“8,500 was my call in the middle of July and we are there… For a change, we have advised people to book profits because the rally is a tad overdone,” Mr Bhasin told NDTV Profit.
There are lots of issues in European banks, while locally, the upcoming earnings season will not be as pleasant as the market is pricing in, he added.
“Investors should look at stocks and sectors rather than at the index,” Mr Bhasin added.
Mr Bhasin’s bullish call on NBCC has proved to be corrected, with the state-run construction company turning out to be a multi-bagger. Mr Bhasin expects prices of NBCC shares to double in the next two years. He is also bullish on Godrej Properties, Suprajit Engineering and Gruh Finance.
In the pharma space, Dr Reddy’s, Cipla and Biocon, are Mr Bhasin’s top picks. He expects the three stocks to “outperform” others in the pharma space.
The metal sector is very volatile, but 2017 will be a commodity driven rally, Mr Bhasin told NDTV Profit. In the metal sector, he expects Hindalco to “outperform”.
“Hindalco is one of the cheapest makers of copper and aluminium in India. Its US subsidiary Novelis also turned in good numbers last quarter,” he said.
Mr Bhasin is also bullish on Tata Steel and JSW in the metal space.
ONGC and Oil India could be “value accretive” in the upstream, Mr Bhasin said. These companies will benefit from earnings catching up, he added.
Mr Bhasin asked investors to “avoid” Cairn India and Vedanta.