Amabreesh Baliga of Karvy Stock Broking believes that the long-term trend is still bullish in the markets and that this is the time to pick up stocks.

He says, "I do not see much of an upside in the markets now, currently just a pull-back is taking place. We see the markets consolidating for the next two months, after which there will be a bullish phase, possibly by November or December. The long-term trend is still bullish in the markets and this is the time to pick up stocks."

He adds that in the next 6 months to one year these stocks will lend decent returns.

Excerpts from CNBC-TV-18's exclusive interview with Ambareesh Baliga of Karvy Stock Broking:

What are you telling your clients, we have pulled back to 10,000 and now almost to 11,000 levels. Where do we go from here?

I really do not see much of an upside from here; it is only a pullback as of now. Going ahead for the next two months one could see some consolidation happening at 9800-10,000 levels or 11,000-11,200 levels.

Possibly after that, we could see a bullish phase starting off, which could take the index higher, which can happen during November-December.

For long term we are bullish on the market, in fact we are telling our clients that this is the time to pick up stocks, pick up slowly over the next two months at your price and not at the market dictated price. Over the next 6-8 months or even a year the return should be decent 25-30 per cent at least.

Anything you are recommending from midcap banking space?

In private banking sector, we were recommending stocks like Karnataka Bank [Get Quote] on which we are quite positive.  I think it has given a decent move in the last couple of days. 

 I think there is another 5-8 per cent more steam left in this stock. Among the PSU banks, we are still recommending stocks like SBI [Get Quote], Bank of Baroda [Get Quote], Canara Bank [Get Quote] and Corporation Bank [Get Quote] , on these stocks we are positive.

Are you bullish on metals?

I am bullish on metals for long-term but if one is talking about the next two months, one will get Tisco [Get Quote] at a lower price than the current levels. We are looking at price closer to Rs 500 to pick up Tisco, but not at the current levels.

What are you recommending from the midcap space? What would your top 3 recommendations at this point be?

There are quite a few recommendations. We are picking up things like Orchid Chemicals, TTK Prestige [Get Quote], Bongaigaon Refinery, Arvind Mills [Get Quote], FDC (FairDeal Corporation) and Ingersoll Rand among the smaller ones. Also BSF, Nicholas Piramal [Get Quote] and Tata Chemicals [Get Quote].

We haven't seen huge rallies in technology stocks. Would you now start looking at tech stocks seriously?

We have been looking at tech stocks seriously for the last couple of months, especially after the rupee weakening, we are more positive on the technology stocks. 

 Technically, we are quite bearish on rupee. We are looking at a price closer to 48 .50 - 49 for Rupee. Because of this, we are quite bullish on rupee and we have been buying tech stocks for the last couple of months.

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