With the stock market behaving quite unpredictably these days, the investors, big and small, are having a tough time making up their minds -- to buy or sell or to stay invested.
During our weekly stock market chat with market expert Pranav Sanghavi on Tuesday, some of them logged in to clarify their doubts. Here is the transcript:
Pranav Sanghavi says: Hello everybody, I'm here. Let's begin the chat.
Rahul asked: Pranav, what will be the future of Deccan Aviation shares when they release the IPO. I got 455 shares at Rs 148 and now I am at a huge loss. Could you please suggest. It is at Rs 80. Will it get lower, will it increase in future, say after three or four months? When can I expect the rise in price? 
Pranav Sanghavi says: Airline Industry is a tricky sector. Not many airlines have been able to earn profits on a longer term. If you can book your loss, book it and switch over to a growth stock.
Ravi asked: Hi Pranav, with MF NAVs going up, can one profit from SIPs now?
Pranav Sanghavi says: SIP is an ongoing process which goes over 3, 5, 10 or a longer period. So a movement in NAV over two to three months will not affect the SIP scheme. SIP mostly is a good form of investment.
Saurabh Kasat asked: How do I spot a bottom in the stock market?
Pranav Sanghavi says: Nobody can spot a bottom or a top for that matter accurately. But there are various factors one could watch for. I know certainly that technical analysts have tools for the same but I watch the fundamentals and the actions of the foreign institutional investors.
Arul asked: Hi Pranav, could you please suggest if there's any fund of funds among mutual funds? Please suggest a few.
Pranav Sanghavi says: There are a few MF houses offering Fund of Fund schemes. But they are for extremely cautious investors. You would be better off investing in a mix of funds.
Ask asked: What are your views on BEL, Titan, Cipla and IVRCL?
Pranav Sanghavi says: All are excellent stocks and will yield a decent return over 12 months at current levels.
Harmeet asked: Will Nifty touch 2,800 or no?
Pranav Sanghavi says: The index movements would remain choppy for some more time beyond which the markets would stabilise. It could touch 2,800 if all factors affecting the market go negative. But it looks difficult to go to that level.
Var asked, what will be the future of market? Is it safe for small investors?
Pranav Sanghavi says: The market for a longer term will perform well. We are at the end of a three-year continuous bull run. Have patience. Let the markets get stable and then move forward. Long-term investors will always make money, be it small or large.
Alok asked: Sir, while selecting stocks, one of the tenants that must stand scrutiny is management. I would like to understand why in hotel sector Indian Hotels management is given more marks as compared to East India Hotels?
Pranav Sanghavi says: Indian Hotels is owned by the Tata Group and we all know the Tata's enjoy an excellent goodwill in India in every sector. EIH is with the Oberoi Group and they do not enjoy the same goodwill.
Bachi asked: I'm a novice in stock market, how do I start?
Pranav Sanghavi says: First take some basic training courses which the BSE and the NSE offer. Then start an investment account with a broker and s/he will help you. If you do not have the time for all that then just invest in mutual funds.
Naresh asked: Hello Pranav, where will the market be in the next six months?
Pranav Sanghavi says: I feel the markets will be stable by then and an index of 10,000 to 11,000 cannot be ruled out.
Rishab asked: Sir, I have bought RNRL 500 share at Rs. 29 and now its Rs 20. Should I buy more to average it? Also, please let me know the future of RNRL.
Pranav Sanghavi says: RNRL should have a good future. I would recommend you to hold on.
Sensex asked: Hi!
Pranav Sanghavi says: Hi.
Nani asked: Hi Pranav, I have Teledata Informatics at 33, Amtek India at 117, GVK Power at 260, Satyam at 790, Pasupati Acrylon at 13. Could you tell me the future of these stocks? I am planning to keep them for long term.
Pranav Sanghavi says: Hold on to Satyam, Amtek and GVK. I don't follow the other two so I won't be able to help you.
Vibha asked: What is your outlook on plantation sector with special emphasis on tea plantation companies?
Pranav Sanghavi says: Tea is a cyclical sector. But the frontline companies like Tata Tea should perform well. Tata Tea also has a lot of exposure to European markets through their acquisition of Tetley.
Rahul asked: Which shares I can put my money in for short-term investment? Could you suggest a few of them to buy in the secondary share market?
Pranav Sanghavi says: I normally never entertain or advise clients for short-term investments. But if you have a two-month horizon, buy TCS, L&T on a day when the markets are down 200 to 300 points.
Rajendra asked: With market largely influenced by FIIs, how safe is it for the retail investor?
Pranav Sanghavi says: If a retail investor does not make hasty decisions in panic then it is safe.
Rahul asked: To book the loss, I should be ready to leave 30,000 at one shot now and I don't want to do that. I can keep it for more than six months. If you say there is a little chance at least, please advise.
Pranav Sanghavi says: Which shares are you referring to? If you hold for six months, you should be able to minimize your loss or get a profit.
Rajendra asked, Hi Pranav, Past few weeks market'seen volatile, any specific reason YOU read, if so, how long do think this may persist.
Pranav Sanghavi says: For one, we are at the end of a three-year bull run. Two, our markets are aligning themselves with global markets. The volatility should persist for some more time. Post a consolidation phase, the markets could rise again.
Latajadhav asked: Should I hold or sell BOC?
Pranav Sanghavi says: Hold on.
Dhanlab asked: For two months' holding, how would you rate the following stocks: MTNL, Maruti, MTNL, Opto Circuits, Praj Ind?
Pranav Sanghavi says: Though I do not follow Opto Circuits, as for others, you definitely can hold on.
Sancheti asked: What is the target for REL Communications, RPL and Uttam Sugar till October?
Pranav Sanghavi says: I am not in a position to give you individual stock price targets. But hold on to Reliance Communication Ventures till its IPO to see a decent return.
Sayali asked: What about Reliance Equity Fund? Will it perform well or not?
Pranav Sanghavi says: Unfortunately for the Reliance Equity Fund, it came out when the markets were peaking at 12,500 levels. So most of its investments would be at higher levels. However, its investments made over the last month or so shall yield good results.
Vidit asked: What is the future for Ranbaxy stocks? I have a substantial portion of my portfolio locked in it. Should I sell or hold?
Pranav Sanghavi says: Please hold.
Mangesh asked: Should I invest in Unitech?
Pranav Sanghavi says: Unitech is an infrastructure stock. One could invest on dips in the market.
Shankar asked: What is the future of the Visualsoft and Winsome Yarn Ltd?
Pranav Sanghavi says: I am sorry. I don't follow either.
Kets asked: Hi Pranav, what's the future of Hindustan Zinc? I have bought it at 1,000 level.
Pranav Sanghavi says: Hind. Zinc is a metal commodity stock. You will have to actively follow the world metal exchanges. Unfortunately, you have bought very close to its highs.
Rauji asked: How would you rate Rel Petro?
Pranav Sanghavi says: Please refer to my previous chat transcripts wherein I have given a detailed reply on RPL.
Mkgupta66 asked: Hi Pranav, I have GUFIC Bio at 15 and Jupiter Biosciences at 115 pe.
Pranav Sanghavi says: Gufic I don't follow. As for Jupiter Bio, you could book a loss and switch to a better stock.
Kapil asked: What about Titan? Will it cross 600?
Pranav Sanghavi says: Titan has big plans for a retail foray. I see a good future for the stock. It should surely cross 600 in near future.
Jafza asked: Iflex -- Rs 1,000 and Paradyne -- Rs 50, Infotech -- providing banking solutions -- which one would you recommend?
Pranav Sanghavi says: Iflex.
Shiva asked: Bought 900 Gujrat Exports. Hold or sell? Advise.
Pranav Sanghavi says: At what price?
SriSriSri asked: Hi Pranav, will the stock market ever enter the 12,000 points range again? Is it possible for the market to go beyond 13,000 range? Any expectations?
Pranav Sanghavi says: Yes the market could touch 12,000 levels in future. If the India story remains intact which I feel it will, markets could cross 13,000 also in 2007-2008.
Saif asked: Sir, what are your views on Datamatics and Visesh Infotec?
Pranav Sanghavi says: Don't follow them, sorry.
Wizkid15 asked: Sir, what are you views on mtnl?
Pranav Sanghavi says: MTNL has some windfalls from the IT department. It also has some strong assets and a huge infrastructure. Looks good in the future.
Maruthi asked: I have bought 500 shares of RPL at 74.50. Should I retain or exit? Ramachandra. bsram9@rediffmail.com
Pranav Sanghavi says: I have given detailed replies on RPL queries in my previous week's chat. Please refer to the transcript.
Jafza asked: Ciba Speciality has fallen by more than 50% -- from 600 to 280 level. Is it worth to be in the portfolio?
Pranav Sanghavi says: All the mid cap stocks have been hammered badly. Ciba Speciality is a good stock so hold on.
Harshal asked: What is the short term target for M&M? Will it touch 700 within 2 months?
Pranav Sanghavi says: M&M is a quality frontline stock. I would recommend to hold on.
Abc asked: Should I hold on to Garden Silk which I had brought at Rs 73?
Pranav Sanghavi says: Yes hold on.
Ravi asked: Is a crash imminent?
Pranav Sanghavi says: I thought markets had already crashed. Markets fell from 12,500 levels to 9,000 levels.
Mkj asked: What are the prospects of Arvind Mills? I bought 100 at 97. Now it is around 56-57.
Pranav Sanghavi says: Hold on.
Sai asked: What is the future Od Adani Exports, TNPL, Orchid?.I have invested Rs 100,000 in these scrips.
Pranav Sanghavi says: You could hold on to them.
Jafza asked: Hind Org Chem -- Is it a dark horse and one of the last PSUs not yet noticed by many investors?
Pranav Sanghavi says: HOC is a good stock. It has a good balance sheet.
Ranjeet asked: Please let me know the future of Beeyu Overseas (tea company). I have 553 share at 12. Recently, they announced JV with Tata Coffiee to expand business in intergnation market. Please suggest.
Pranav Sanghavi says: I don't follow this stock, sorry.
Arup asked: I recently bought Harrison Malayalam at 120. Should I hold on or book loss?
Pranav Sanghavi says: If you can, hold on. If you have a better opportunity to invest then book loss.
Krishanu asked: Sir, I bought 900 IDBI shares at Rs 88.80. Now they are around 55. What should I do? Sell or hold on? Is IDBI robust enough for a comeback?
Pranav Sanghavi says: The banking stocks are witnessing a negative trend. Even the frontline stocks like SBI are going at 6 PE. The rate hikes amongst other issues will decide the fate of the banks.
Rajan asked: Bonus shares are informed by Infosys, Tatas -- when are they actually coming? Even if I buy them now -- do I become eligible for bonus shares?
Pranav Sanghavi says: You could check them with your broker. They should have the information. I think the cut off date for TCS has been announced and it is July 31.
Chetan asked: What is your view on SAIL? At what price one should enter and exit?
Pranav Sanghavi says: We were expecting a jump in SAIL stock price after the mega merger announcement of Mittal Steel with Arcelor but it went down. On a longer term, however, SAIL will perform well as the other frontline steel stocks like Tisco. The infrastructure development will sustain the demand for steel.
Anand asked: Hi, you say you watch the activity of FIIs. Where Can I do the same and track their activity on the F&O section? Is there a plan that we can use in the F& o section?
Pranav Sanghavi says: Most of the Business channels like CNBC daily give out information of FII activity. If you have access to the Internet, even the Sebi website and various other financial portals carry such data.
If you notice the FIIs shorting the Nifty, it means next they will sell stocks to bring down the market and make a profit on the short position also. It, however, is just one of the indicators and may not always be correct.
Bharat asked: Hi Pranav, could you advise about RCVL, Cipla, B Forge? I am in loss.
Pranav Sanghavi says: Hold on to all of them. They will yield returns soon.
Lioneldcunha@rediffmail.com asked: Being an NRI, I did not receive any shares after demerger from Reliance Industries although I hold 400 shares of the same. Where can I go for redressal?
Pranav Sanghavi says: Write to the company giving complete details of your shares. I am presuming you are holding them in physical form. If it were in demat, you would have already received them.
Rishab asked: Sir, I have bought FDC's 300 shares at Rs 56 and now it is Rs 40. Should I hold it?
Pranav Sanghavi says: You could hold on.
Rajeshp asked: What is your advice on Orchid Chemicals and Pharma Company? I have shares at 333. Current price is 180. Should I hold them or partially sell them?
Pranav Sanghavi says: Hold them.
Sai asked: Hi, Will the Sensex again test 9,000? Some says it will test even 8,400 next month. Is it the right time to enter investment?
Pranav Sanghavi says: At 9,000, we are seeing a strong support even from the FIIs. But nothing can be ruled out.
Rajan asked: What are the sectors that are falling now and worth a buy? I hold stocks in virtually all sectors, metals, IT, oil, FMCG.
Pranav Sanghavi says: FMCG, software, diversified, infrastructure etc should do well among other sectors.
Sert asked: Sir, I have D-link 1000 shares at 120. I am a long-term investor. What to do?
Pranav Sanghavi says: Hold on.
Ami asked: How is Reliance Communication in long term? I bought it at 261. Is it a wise investment?
Pranav Sanghavi says: Excellent decision. Hold on.
Sachin asked: I have Mahindra&Mahindra at 650. Hold or sell?
Pranav Sanghavi says: Hold on.
Mkj asked: Is stock market all about saving and then investing? Can one not take loan at a moderate 10 to 12 % interest and then invest in market? Please explain.
Pranav Sanghavi says: Investment in stocks are normally from risk capital. If one borrows to invest in stocks, the risk is doubled.
Achar asked: Hi, what according to you would be a good ROI over a period end 2005 to end 2008 investments in strong midcaps across all sectors?
Pranav Sanghavi says: Over 30 per cent.
Vilas asked: Do you follow MTNL?
Pranav Sanghavi says: Please refer to my earlier reply on MTNL.
Manish asked: Sir, I have Prakash Industries bought at 38. I can hold up to one year. What is the stock's future?
Pranav Sanghavi says: Sorry I don't follow this stock.
Ganesh asked: Hi, I have HCL Tech at 500, Ashok Leyland at 45. Shall I hold it or sell? When is right time to buy shares?
Pranav Sanghavi says: Hold on to both.
Vijay asked: Iflex at 1,110. Should I hold on?
Pranav Sanghavi says: Yes.
Ravi asked, If a newbie wants to dabble in the stock market, is this a good time?
Pranav Sanghavi says: Yes, especially with the markets having fallen nearly 25 per cent.
Naru asked: What is the future of IVRCL? I HAVE 100 at 285.
Pranav Sanghavi says: I see a good future for IVRCL.
Ami asked: How is Reliance Communication in long term? I bought at 261. Is it a wise investment?
Pranav Sanghavi says: I think I already answered that query.
Stockmastermc asked: Why did you not answer me about Auto Axle? Don't you like my id?
Pranav Sanghavi says: There are hundreds of questions being hurled at me. I must have missed it. Please don't take it personally. Auto Ancilliary stocks should do well in future.
Sheetal asked: What is the future of short term investors?
Pranav Sanghavi says: Hold on and stay invested. Change your views from short term to long term.
Pranav Sanghavi says: It was great, as always, chatting with you people. Hope to see you again next week. Happy investing. Thank you and bye.
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