Rohit Singhania, Co-Head – Equities at DSP Investment Managers, in an interview with CNBC-TV18, said one of the key things to look at while identifying stocks for a portfolio is understanding the business cycle and valuation.

“Just because something has not done well in the last 6-9 months, for it to start doing well there has to be a change, maybe a business change or environment change. So, I would say while identifying stock one has to understand the business, business cycle, and valuations,” he said.

“In the last 1-1.5 months a lot of laggards have seen a move, but it is also backed by some improvement in their business fundamentals. So, the polarization which was happening till 1-.15 month back, that has come down. We have seen a broad based rally because fundamentals have also seen an improvement. So, let us not go by last 6-9 months performance, look at the business and then take a call in identifying stocks for the portfolio,” he explained.

On the Bank Nifty, Rohit Shrivastava, Founder & Strategist of Indiacharts.com, said, “We broke out of a triangle pattern that developed over the last couple of days. Breakout from that triangle pattern is indicating a possible blow off move in the Bank Nifty that could occur towards 33,000.”

(Edited by : Bivekananda Biswas)