India is a fantastic market, a strong market, said Dean Kim, executive director and research analyst at William O'Neil Global Advisors, in an interview with CNBC-TV18.
According to him, one needs to be holding the stocks that are working.
“Technicals will tell you when you need to start trimming. I don’t see any signs of that right now because India is a very strong market,” he said.
When asked where the next leg of leadership will emerge from in the Indian market, he replied, “There are so many pockets of fantastic stocks. I look at fast moving consumer goods (FMCGs), retail, basic material, energy.”
From the FMCG space, he likes Britannia, Varun Beverages, United Breweries, Zydus Wellness.
In retail, he likes IndiaMart, Trent, Aditya Birla Fashion; in basic material, he likes Asian Paints, Pidilite Industries and in the energy space, he likes Tata Power.
“We have included Tata Power in our focus list. Tata Power is breaking out from its base, so it is a wonderful opportunity,” explained Kim.
“Near and dear to my heart is financials and right now, banks are not coming back as quickly as one believes but there is still an opportunity in banks on a long-term basis,” he said.
He also said he likes ICICI Bank, Bajaj Finance and Can Fin Homes.
“Definitely keep an eye on HDFC Bank. HDFC Life Insurance is also looking actionable. So yes, the Indian financial space is going to be exciting, going forward,” he shared.
Reliance Industries is looking good and it is actionable now. “If you hold Reliance, continue to hold it. You may even want to add to positions here,” he said.
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According to him, Titan is extremely extended at the moment. “It is a fantastic story, has good growth opportunity but the stock price is way too extended. If you hold Titan, continue to hold it, but if you want to add Titan to your portfolio, I would wait until the stock comes down to moving average and finds support there. That would probably be a safer play,” he said.
In new-age technology companies, Zomato looks very interesting. “I would wait until the stock can break above Rs 148 before taking action,” he shared.
In terms of US Fed meeting, he stated, “This time around, I don’t expect a huge knee-jerk reaction. A large part has already priced into the market and as long as the Fed slows down on a gradual basis, I am talking $10 billion retraction every month – that should be fine. If the Fed starts to cut back $30-40 billion a month, then I think the market is going to react but it will be fine.”
For the full interview, watch the accompanying video.
Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.