Sensex sinks once more. After Monday's euphoria, analysts had warned that good days are not here yet, rather the bad days will continue for quite some more time.
In such jittery times, what strategy should you adopt? Which stocks to buy, sell and hold?
Stock 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 and welcome to the chat. Let's begin.
khus asked, i hold rpl what should i do what is target
PRANAV SANGHAVI answers, at 2008-10-15 15:37:19As of now the market looks set to test new lows. Oneas to be extremely cautious. One can not do much besides holding on to the stock as of now.
riyas asked, Hi Pranav, Is the market downside over? Are we expect more downside in the futurue.? At what level the sensex will find bottom? Thanks
PRANAV SANGHAVI answers, I don't think the downslide is over. We may test the previous lows again. One should be very cautious in these tumultous times. Just look at the last four trading sessions there have been over 4 moves of over 500 points. That suely must tell you something. I would stay out of investig for a while till things calm down. I would also not try to trade and make a call where the market is headed as more often than not you will be proven wrong. Stay as much in cash as possible and if you are invested in good stocks then just sit tight as one should not sell in panic at such low levels.
SRR asked, Is HDIL fundamentally good for long term(3-5years)?Please reply?
PRANAV SANGHAVI answers, A lot of frontline Sensex stocks look extremely attrractive but every day they fall a bit more than when you thought they were attrractive. I would not enter the realty sector right now as things don't look too optimistic for the sector atleast in the next few quarters.
sa asked, what is future of GVK Power
PRANAV SANGHAVI answers, You would have to hold on for a long time with the stock. In the long term power sector will do well but in the short term it will remain an underperformer.
Kamil asked, Is aban offshore good buy at Rs 1050 for 1 to 2 years outlook? Thanks
PRANAV SANGHAVI answers, Aban looks good at every new low that it makes. Unfortunately it keeps making new lows. I would surely love to get in to the stock but not very soon as it looks it may slide further.
Nithin asked, Hi i'm planning to invest about one lakh for a medium long term.. when do you think is the right time to invest and what are the scripts i can look into??
PRANAV SANGHAVI answers, There is no right time. It depends on your time frame for investing, your appetite for risk etc. In the currentvolatile state of the markets I would suggest you hold on to the markets and only get in once the markets have stabilized a bit. You should only stick with frontline index stocks giving a profit growth of over 15 to 20% YOY basis.
ravi asked, Hi Pranav, I have 25 Grasim share at 2250. Now the grasim is trading at around 1500. Can i buy more at these level to average it. Is it good company to hold it for 2 years horizon.?
PRANAV SANGHAVI answers, I think fundamentally stocks could be looked at to average out. But in this falling market you may buy at 1500 and then find it at 1250 a week later. So I would suggest wait and watch.
shah asked, I have invested in DSP ML Tiger growth fund. After Bank of america took over the ML, is this fund still functioning.? Will there be any problem expected for this company? I just want to know whether the fund is safe from financial crisis? Thanks.
PRANAV SANGHAVI answers, Yes it is still functioning and it is relatively performing better than the index. It has not fallen as much as the index. But the fund has done well in the past mainly due to the fund's manager. I think he has already left or is planning to leave. I would see whothe new manager is and then take a call. As in terms of safety issues, Blackrock a leading PE Firm has acquired the stakeof Merrill Lynch and Hemendrabhai still continues to hold his majority stake. So the asst management company will not go bankrupt but the fund's nav may due to the falling markets.
bcf asked, what abt HDIL?? i have 500 @400..Shud i book loss or hold
PRANAV SANGHAVI answers, You will have to hold on. You may average at lower levels. But it will take a very long time to see those levels.
chetan asked, what a DLF situation
PRANAV SANGHAVI answers, DLF is making new lows constantly. Being a part of the real estate sector it will also face negative sentiment and looks to retain a downward bias.
shah asked, How much downside we can expect for the steel sector like Tata steel?. Shall i use this oppertunity to buy more and hold it for 1 to 2 years outlook?
PRANAV SANGHAVI answers, See world over the steel prices had corrected. In India the true picture was not reflected. Now with this global meltdown of equity an commodity markets the parity between global markets and Indian markets is getting in place. I think there could still be a further downside.
surendramohan asked, what about moserbaer and suzlon ? Pls tell me about these stocks?
PRANAV SANGHAVI answers, Both these stocks have corrected sharply much in line with the maretks. Both have good business lines and Iwould hold on to them with a 1 to 2 year outlook. Suzlon is in a sustainable/renewable energy business which is the buzzword all over europe and developing countries.
shashi asked, i have jpassociates 250@230 what do i do ?
PRANAV SANGHAVI answers, It will take a very long time to see that price. I would switch if I could to a better stock to minimize losses.
sourav asked, Hi.. Pranav.... I have shares of CESC@320,Guj Nre Coke@39.7, IDBI@75.8 What is the prospect of these shares? Please suggest some stocks with 1 yr view.. Thank you..
PRANAV SANGHAVI answers, These are fundamentally strong shares but they will move with the markets and may remai underperformers over the next couple of quarters.
deen asked, Shall i buy L&T at 950 and ONGC at 850?
PRANAV SANGHAVI answers, I would look at L&T below 900 surely with a 1 to 2 year outlook. Even with fears of profitability going down I would still look at the stock at those levels. ONGC being a oil sector stock where the crude markets is extremely volatile I would not take abet at current levels.
Bullish asked, what is your opinion about infosys ? i bought it at 1480..now it has gone down to 1300
PRANAV SANGHAVI answers, A large percntage of Infosys' clients are from USA. With the economic slowdownin US, there is a negative otlook on Infosys and a downward guidance also from the management. Otherwise with the dollar having risen by over 20% the stock should have been skyrocketting.
chetan asked, Hello DLF buy or sale
PRANAV SANGHAVI answers, Defintely not a sell at these levels. Maybe buy after it further corrects.
naufi asked, Can you expect cement companies shares will go down further. I am holding Ultratech cement 15 at 650. Shall i hold or buy more at dips?
PRANAV SANGHAVI answers, With the perceived fall in the real estate sector and growth slow down in the infrastructure sector there is a negative sentiment towards the cement sector. In the short term the cement stocks look to underperform.
shreenivas asked, can i buy 500 nos sesa goa for long term say 3 yrs what will be target
PRANAV SANGHAVI answers, I like the stock. It has a very strong balance sheet and I would surely look at the stock on every dip with a 2 year outlook.
faizal asked, I heared lot of bad news about ICICI Bank. It may be a remours. I am holding 43 ICICI bank shares. How safe the ICICI Bank is? Shall i hold it or sell it? Kindly advice.
PRANAV SANGHAVI answers, I think it was more of rumors and panic amongs the depositors. I don't think ICICI will fall. The government has gone on record and said so. I would surely hold on.
rifky asked, I have 43 RCOM and 50 ICICI Bank. shall i buy more to average those losses?
PRANAV SANGHAVI answers, RCom has corrected very sharply as compared to its peer Bharti. You could lookat averaging but at lower levels not currently. ICICI also looks good with a longer term outlook. But again average if the market corrects further.
Roy asked, Do you think the market has hit the botom or it will go down further?
PRANAV SANGHAVI answers, It could surely go down further. This crisis is not limited to our country but its a global phenomenon. Currently the sentiments are very low and the economic conditions all around even worse. Iceland a country has all but gone bankrupt. We are in a way insulated to a point in the sense that we have next to zero exposure to US Mortgage markets. Our PSU banks are in a far healthy condition as compared to most of the global banks. But as the FII's who are acive in India will only follow global markets so will our markets fall in tandem wit global markets.
slow asked, Shall i buy TCS at 540 for long term. Is it a good buy?
PRANAV SANGHAVI answers, They have announced large orders which the company has bagged, they have announced large acquisitions but nothing has helped the stock. TCS will move in tandem with the markets so till the Markets dont' recover and there is a sens of stability in the US economy I think the software sector will under perform.
slow asked, Tech mahindra at 400. Shall i hold or sell?
PRANAV SANGHAVI answers, One can do nothing but hold on as it would not be wise to sell at these low levels. Tech Mah is a quality stock in the software sctor.
nand asked, at what price L&T,SBI,BHEL,NTPC can be purchased to avoid risk
PRANAV SANGHAVI answers, All are at attractive levels altough BHEL has not corrected as say maybe an L&T but still I would wait for further correction before considering buying. All the stocks will give decent returns over 1 to 3 year terms.
raj123 asked, I have Indiafulls financial, Indiabulls real estate, JP Associates, Unitech, DLF, ICICI Bank, Infosys, TCS & L&T at loss? Suggest me what to do?
PRANAV SANGHAVI answers, You will have to hold on. Selling at these low levels will not be advisable.
Abe1 asked, If someone has to enter the market now which stocks should he pick for a 2-3 year horizon
PRANAV SANGHAVI answers, SBI, L&T, RIL, NTPC etc.
Srikanth asked, Hi Pranav,I have RNRL 120 SHARES@105 can i average it further or shall i hold it for long term?
PRANAV SANGHAVI answers, As I have been saying from over 6 months. Nothing will happen to the stock price till the outcome of it's legal battle with RIL.
ZZZ asked, Hi Pranav, Can you please tell me DLF buy back procedure..I have 100 shares @700
PRANAV SANGHAVI answers, I don't think they are making an open offer ZZZ. They have taken permission to acquire stock from the open market upto Rs. 1100 odd crores and upto a price of Rs. 600.
haider asked, good afternoon, need your views onRCOM i am in a loss of 70 %. will it ever come to 600 levels
PRANAV SANGHAVI answers, In the short term it looks very difficult.
Hegde asked, DLF is around 310 Rs. But buyback date is 16th Oct and rate is 600 Rs. How they will buyback? at what rate?
PRANAV SANGHAVI answers, I have explained the procedure a few replies back please refer. It is not a direct offer to purchase from the shareholders but through open market purchases.
Lambodar asked, Is it the right time to buy a fundamentally strong scrip?
PRANAV SANGHAVI answers, You could look to buy in very small parts of 5% on every dip.
abhinav asked, I want to invest in Bartronics, L&T and ICICI is it a good time to enter or wait
PRANAV SANGHAVI answers, L&T and ICICI you could look at Bartronics I would avoid in the current market scenario.
girish asked, Can I buy punj llyod at the current price?
PRANAV SANGHAVI answers, I think it correcte over 10% today. It is indirectly related to the infrastructure sector so in the short term I would not look at the stock.
PRANAV SANGHAVI says, Well it's time for me to lave. Bye for now.
