PSU stocks expected to trade sideways for next six months: Digant Haria

economictimes.indiatimes.com:

«I think people will wait and watch. They will consolidate. So, I think last Monday, the exit poll day, whatever levels you saw should be the top for PSUs for the next six months and on Tuesday whatever lows that we saw on the result day I think that should be the floor and most of them will move in the trading band of Monday and Tuesday so to say,» says Digant Haria, GreenEdge Wealth.

I guess the markets would be very pleased, the top four cabinet ministries stay put and clearly a messaging of continuity and I think that is something that the market would be liking.
I think this Tuesday is far better than what last Tuesday was. Last Tuesday, we were all scared. We did not know what is going to happen. Compared to the verdict that we saw last Tuesday I think the cabinet and the bargaining with the allies I think everything is falling in place. So, I think the worry is less but because we are at elevated levels and because this entire PSU pack and the defence, infrastructure all these things were so overheated that I think they will still need three to six months of sideways movement or consolidation so to say despite the stable government.

And let us not forget that in December we have a crucial state election, which is Maharashtra and I think till then the government will be more focused on politics than on economics. So, I just think that next six months is slight bit of pause in this three-year bull market that we have witnessed.

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