With the Sensex crossing the magic figure of 15,000, which stocks should an investor put his money in? Will tech stocks fair well at this time? Will it be proper to invest in cement shares now?
Which stocks to buy now and which ones to sell? Market expert Pranav Sanghavi replied to many such readers' queries during an hour-long chat on rediff.com on Wednesday. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon everyone. Let's begin.
Thiru asked, How do you see the market for the next 3 years?
PRANAV SANGHAVI answers, at 2007-07-18 12:08:32I don't foresee any drastic problems with our economy it looks to grow as it has over the past 2 years. If there are no major governmentat policy changes, I think we could see a growth continue for another 4 to 5 years atleast.
satyajit asked, u r view about YES BANK
PRANAV SANGHAVI answers, It is a newer bank in comparision to it's peers, so it will have a lesser NPA problem. It has also give decent numbers and looks to do well in the future. Also, the interest rates might plateau and maybe fall a bit over the next few quarters.
ala asked, Sir, Pls tell me can I continue to hold Asian Electronics, Shasun Chemicals, Hikal Ltd, Jindal Steel, Indo Asian Fuse Gear and Surana tele.
PRANAV SANGHAVI answers, Barring Surana, Indo Asian Fuse which I don't follow you could hold on to the others.
ala asked, Sir, Pls advise can I buy Indusind Bank at current levels for one year holding.
PRANAV SANGHAVI answers, You could look at it with a 1 year timeframe. But there are better quality public sector banks available at similar PE ratios which might yeild good returns if you are willing to hold for 1 year.
ak_port asked, i Hanve peninsula land future at 510. what to do with this.
PRANAV SANGHAVI answers, They have decent expansion plans under way, I think you can hold on surely with a longer time frame.
meyya asked, Which broker provides best services,they differs by transaction fee ,which is the best of all (icici direct,share khan,reliance money.........)
PRANAV SANGHAVI answers, Well there are various factors one must consider whilst choosing a broker. brokerage charges are just one of the factors. You have to see the service they provide, transparency levels, research etc. also. I am not in a position to name you any one particular broker.
gauravk asked, Respected Sir, Good afternoon. kindly let us know the long term pros pective of essar steel i am having 1000 share @ 38/- recently it has news that it is going to delist. kindlya advise what should i do. I am long term investor.
PRANAV SANGHAVI answers, Good afternoon to you too Gaurav. The delisting is not yet finalised and once it is decided you could take a decision based on the buy back price etc.
ala asked, Sir, Very difficult to sale physical shares. I understand that Ministry of Company affaris has issued guidelines to give exit route to physical shareholders. But no such exit route is offered by listed Corporate companies. Sir, use your good office and try to bring it to the notice of Ministry of Company affairs, Finace Ministry and Sebi and try to help small shareholders holding shares in physical form.
PRANAV SANGHAVI answers, A lot of people have similar concerns and if I am not mistaken SEBI is trying to take some steps to solving that problem. Mean while physical shares can be sold through a window on the BOLT system. But you have to register as a client.
pradeep asked, Sir, Good Afternoon, how do u see ABB (CMP-1068) for buy today? how r the fundamentals?
PRANAV SANGHAVI answers, I am not a technical analyst so will not be able to give you daily price targets but ABB is a fundamentally strong stock and you could surely look at the stock with a long term perspective.
gauravk asked, kindly alsoadvise about the IPOs Omaxe
PRANAV SANGHAVI answers, I think they look to be a bit over rpiced but the real estate story will unfold only in 2009 and 2010. But you could look at it with a longer term view.
pradeep asked, Can u suggest some growth stocks from banks and capital goods to buy? What do u think about the fall in market despite the earning season?
PRANAV SANGHAVI answers, L&T, BHEL, Siemens, SBI, Allahabad bank, Vijaya Bank, ICICI, HDFC Bank etc. But buy on corrections and dips.
mansi asked, sir, i have unitech shares @ 515. should i sell or hold?
PRANAV SANGHAVI answers, I think you can surely hold on.
NITIN asked, How do you think about Moser baer? Can I buy it in the range of Rs.310 to 315
PRANAV SANGHAVI answers, They are getting in to newer fields besides CDRoms and DVDs. I think it is a good long term play in the hardware sector.
leo asked, I have purchased 250 shares of eveready at an average price of rs 52.6,recently there was news it has around 3000 acres of land in Delhi,Lucknow and Mumbai and it is planning to Enter Real estate buisness,Should I hold these shares
PRANAV SANGHAVI answers, If the story does unfold and they do take up development then the shareholders should definately benefit from the same.
Raj asked, Goodafternoon Pranav, What is your opinion on Mega Soft after meger of Visual Soft with it?
PRANAV SANGHAVI answers, A lot of the midcap tech stocks are consolidating by aquiring or merging with rivals who have a lot of synergistic values. I think both companies should benefit through reduction of costs and larger product base.
pd asked, hi, I have 50 DLF what is the future after its 1st qtr.
PRANAV SANGHAVI answers, I think they should give stellar resutls for the first quarter.
SANDYKOTHARI asked, how abt buying RCOM at current prices with time horizon of 1-2 years
PRANAV SANGHAVI answers, I have been recommending it from last year. I still see a lot of value in the stock and one could surely hold on. It has doubled its price in the last one year and I think it will do so in the future too.
K.Karthik Raja asked, i have purchased bajaj hind share when it will come up
PRANAV SANGHAVI answers, I think for a few more quarters the sugar sector may remain lack lustre. Unless the government comes out with further sops for the sector.
ecdlev asked, some companys are given bonus shares.how mach time they will take to issue
PRANAV SANGHAVI answers, You should check with your broker for the record dates for the bonus issue.
sk asked, Shall we hold GMR at this level or sell it and what abt RPL will it go down from this level?
PRANAV SANGHAVI answers, I think GMR has a promising future and have large projects on hand. One couls hold on with a 1 to 3 year time frame. RPL also is a good stock to hold for the same time frame.
suresh asked, I AM RETIRED PERSON HAVING NO KNOWLEDGE OF SHARE MARKET IS IT ADVISABLE TO INVEST IN SHARES NOW
PRANAV SANGHAVI answers, One must understand that investing in the share markets is a high risk avenue. If your risk appetite is high you could look at it. But I would suggest you should garner knowledge of the markets before investing.
kash asked, Hi Pranav...got a quick question about Infosys stock... had bought at 2100... should keep or sell at this stage?
PRANAV SANGHAVI answers, I think you should look at Info with a longer term view and I think they will surely perform well in the future. You should hold on.
Chinni asked, What is the future of HDIL stocks and at what approximate price they would be listing.
PRANAV SANGHAVI answers, The future will depend once the stock gets listed and gives a few quarters of results based on which we could tell the future.
dilawer asked, Does intraday trading works...... I tried continuously for 6 days ...& lost !!!!! Please help lift up my spirits !:)
PRANAV SANGHAVI answers, Intraday is a highly risky strategy. I would strongly advise you to trade with at least a 1 month to 2 month trading range. the longer you hold your position the better chances of you making a profitable trade.
RakeshD asked, Where do u think market will move in short to medium term?
PRANAV SANGHAVI answers, I think in the short term due to the excess liquidity it should rise first before giving a minor correction. In the medium term the market looks to rise steadily.
seshvis asked, Power Finance. Should I hold or sell. Today's quote at 190+
PRANAV SANGHAVI answers, I think you could surely hold on. They have given good results and look to continue to do so.
minu asked, what about tata motors will it go up
PRANAV SANGHAVI answers, I think once th einterest rates stabilize or move down marginally then the commercial vehicle and retail auto sector will spurce up again. You could surely hold on.
Chinni asked, Can I buy MindTree stocks now. What is your opinion on buying NITIN file protection stocks at this point of time.
PRANAV SANGHAVI answers, You could look at MindTree with a longer term outlook.
deep asked, IS RIGHT TIME TO INVEST IN SUNDARAM GLOBAL ADVANTAGE FUND (NFO)?
PRANAV SANGHAVI answers, I would have to study the portfolio before commenting on the same.
Chinni asked, What is your view on : Parsvnath, Unitech, Lanco Infratech and Sobha Developers shares.
PRANAV SANGHAVI answers, Unitech stands out from the lot.
krmachar asked, At what price can one enter Financial Technologies and Lakshmi machine works?
PRANAV SANGHAVI answers, FT can be looked at even at these levels as it is the owner of one of the largest commodity exchanges of India. When they do come out with an IPO for the exchange the stock will see further value addition.
ramnik asked, [please tell about propect of Hotel leela
PRANAV SANGHAVI answers, You could look at it with a 1 to 2 year time frame.
RBRASTOGI asked, I SOLD ITC EQ IN RS.154/- PER SHARE AND SHIFTED THIS AMOUNT IN EQ 500 'RPL'IN RS.114.30 PER SHARE TODAY.PLEASE EVALUTE MY ACTION , RIGHT OR WRONG DECISION? RB RASTOG
PRANAV SANGHAVI answers, The FMCG sector has been underperforming. Rpl will be a steady riser over the next 1 to 2 years. But both sectors are diverse. Although I feel ITC should give decent results this quarter.
saharup asked, i have 300 shares of aksh optifibre @ 67 a piece and 75 shares of harisson malayalam @ 110 a piece. what should i do with the stocks?
PRANAV SANGHAVI answers, Harrison you could surely hold on. The other one I don't follow sorry.
ss asked, i have 500 shares of crompton kindly advice shall i hold it or exchange with rpl or any other good stock.kindly advice
PRANAV SANGHAVI answers, I think you could hold on to Crompton.
sanjay asked, i am short in nifty future july @ 4400/- (400 nifty). what should i do now? should i go for average or just sit & watch? finally will it give me some profit or not?
PRANAV SANGHAVI answers, The markets may rise a bit more before it corrects. So you could short further at higher leves to average out before squaring your position when the market does correct.
vimal asked, what abt sundrm clayton please?
PRANAV SANGHAVI answers, It is a leading player in its sector. You could surely hold on.
jay asked, mutual fund investment is ok ?
PRANAV SANGHAVI answers, If you do not have the time or the knowledge to invest in shares but still want to MF's are your next best bet. It is managed by professionals.
som asked, sell or hold rnrl, rpl and unitech?
PRANAV SANGHAVI answers, Hold.
Ma asked, What is outlook for IT stocks?
PRANAV SANGHAVI answers, I would like to take a contrarian view and invest with them at these levels.
Shabeer asked, Hi Pranav, Now that the sensex has crossed 15000 when is the correction expected? What are the prospects of Nitin fire?
PRANAV SANGHAVI answers, The Index PS is inching towards 20 - 21. Once it breaches that even a small negative news will impact the market adversely. Our F&O open positions are also nearly at all time highs.
Neel asked, What is future of Raj television. purchased from ipo at 275
PRANAV SANGHAVI answers, You could hold on.
MILIND asked, WHAT IS FUTURE PROSPECTS OF BANK OF RAJASTHAN
PRANAV SANGHAVI answers, I think they have cleared their NPA issues and are looking to grow in the future. There were talks of a merger and stake sale but nothing has materialised.
Billgate asked, where do you see Valecha next 2 to 3 months and also prime securities
PRANAV SANGHAVI answers, Valecha Engineering should rise steadily and prime securities has shown some good growth over the past few quarters if it continues to do the same then we could see higher levels.
Smita asked, Hi, Pranav, I am smita from pune, I am working in software company and wish to invest for first time in some good stock, can you please tell me which are good stock to invest
PRANAV SANGHAVI answers, Hi Smita, I would suggest to stick with the frontline IT, Banking, Real Estate, Infrastructure, Cement Stocks. Also please do thorough research and take advice from you broker before investing. Also, invest during a correctional phase and dips rather than all time highs which the markets are trading currently.
bullish asked, hope you are doing fien, do u suggest to enter ABB at this level 1070/-?
PRANAV SANGHAVI answers, Thank you Bullish, I am. Yes you could look at it with longer terms. But markets could correct soon so you could buy on dips.
Rajesh asked, I have 100 shares of Sun Pharma and I am holding the same for past 4 years. Should I hold the shares or sell them.
PRANAV SANGHAVI answers, I think you could continue to hold them. They have performed well in the past and look to do so.
Raj asked, What will be listing pice of Everonn Systms, Simplex Projects, Allied Digital and Spice Communication. Shall one hold or sell after listing? Pls suggest.
PRANAV SANGHAVI answers, That comepletely depends on your investment time frame. If you are a longer term investor then you could hold on.
ashu asked, any good mutual funds to advice ..i am a first time invester.
PRANAV SANGHAVI answers, You oculd look at large cap diversified funds. But I won't be able give you specific names. You could talk to a qualified MF advisor.
vpotnis asked, Where do you see Petronet LNG in the next 6-12 months?
PRANAV SANGHAVI answers, I think they should give decent returns from current levels over that time frame.
Mahesh Gowda asked, Hello pranav, Shall i take Celestial labs @ 65 Rs, what may be the upside after 3 moths, how it looking like since it has gone high of 104 and dropped back to around 65
PRANAV SANGHAVI answers, Hi Mahesh, it has just listed so I would wiat for a few quarters before taking a call on the stock.
ramesh asked, I have short 4300 option rate of 150/-. What can i do now?
PRANAV SANGHAVI answers, Have you bought a Put or sold a Call?
ohif asked, Hi Pranav, i want to learn the basics of fundamental analysis. in the meanwhile can you suggest some good books on fundamental analysis.
PRANAV SANGHAVI answers, You should take on courses offered by the training institutes of BSE and NSE. You could read books by Ben Graham, Warren Buffet amongst a host of others.
ashu asked, waht r urs view on Dr. reddy...i own them at 790/-
PRANAV SANGHAVI answers, I think you can still hold on.
Ananth asked, Is it still worth to hold onto the Sugar stocks..
PRANAV SANGHAVI answers, No not in the near term atleast.
gt asked, Hi, Should I book profit in Tata Steel and exit?.. Buy price @446
PRANAV SANGHAVI answers, I think if you are a longer term investor you could hold on.
kp asked, kp should i hold SBI Bank share
PRANAV SANGHAVI answers, Yes it is the largest bank and hase given fantastic results despite the intrest rate hikes.
uu asked, Good Morning Pranav. I would like to know the future of IDEA stock? Is it good for long term considering telecommunication sector is growing by leaps and bound? any other telecommunication stock?
PRANAV SANGHAVI answers, Good afternoon UU, I think IDEA although not being a front runner like a Bharti or RComm, will also perform well in the future. It has already gone up by over 75% since listing. I think it is a decent bet for a longer term.
akdas asked, what is your view of cmc, srf ltd and syndicate bank?
PRANAV SANGHAVI answers, All look good with a longer term outlook.
raju asked, Good afternoon, I have bought a year back both hyderabd industries @310 and Liberty shoes @275. I can wait for 3 to 6 months. please give me med. to long term look on these counters.
PRANAV SANGHAVI answers, I think you should see a 25 to 20% return over a 6 to 12 month time frame.
advait asked, what is the circuit
PRANAV SANGHAVI answers, A price circuit is the upper most price that a stock is allowed to trade on a particular day. The percentage varies from stock to stock. Normally it is 10% in a particular day.
user asked, Hi, How can I open drmat account online?
PRANAV SANGHAVI answers, You will still need to submit documents in hard copies for your residential proof, PAN card etc.
Ananth asked, How is the outlook for Sesagoa..
PRANAV SANGHAVI answers, I think Sesa has its board meeting this week. I think very soon a buy back price will be announced. If it is higher than the market rate then the stock could rise further.
sash asked, Hello Pranav.... I am working as a executive in a MNC. Looking at the latest Market standerds and rise, i am very keen to start my investing in BSE, NSE. for that just last week i opened a DP account with a broker....Can you please let me know with which company or sector i can start my investments. I am looking for short time investment. This is my first time in investing and if this time I loose some money , then I guess my mindset will go oppose to sharemarket for rest of life
PRANAV SANGHAVI answers, I would advise that you undertake basic courses on investing and then indulge into investing especially for a short term period. If you do invest on tips from friends without fundamental research you will surely burn your hands. And the amrkets are poised for a minor correction, you could look at the frontline stocks of sectors I've mentione dearlier in my chat.
Don asked, Whats your opinion about tech stocks? I have Tech Mahindra, TCS should I hold or sell out(If hold, for how long)? Do you consider entering INFY at this stage?
PRANAV SANGHAVI answers, I think they will perform well in the longer term. In the short term the weakening dollar is cuasing problems for their topline and bottomline. I would surely look at Wipro, Infy, TCS and Tech Mah at these levels with 1 to 2 year outlook.
abc asked, Sir, Can we buy Himatsinka Siege at CMP?
PRANAV SANGHAVI answers, It is a niche silk fabric manufacturer. I think the silk demand is not depleting and will only rise so one could look at it with a longer term outlook.
navneet asked, hello sir ...my question is that i am having some holding in indiabulls share ...what u think about that share .....
PRANAV SANGHAVI answers, I think both the financial services and the real estate arms of Indiabulls should do well in the future.
PRANAV SANGHAVI says, Well it's time for me to leave. Hope to see you'll next week. Bye for now.
Chat with Pranav every week!