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'A small correction round the corner'

August 17, 2006 14:24 IST
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With the market being choppy this season, investors were concerned if this was the right time to enter the market during our weekly market chat with Pranav Sanghavi. In his usual pragmatic style, Sangahvi answered all the queries for an hour. Here is the transcript:

PRANAV SANGHAVI CHAT says, Hello everyone. Let's begin the chat.

BDC asked, Is it the right time to enter Share market or wait for a fall

PRANAV SANGHAVI CHAT answers, One can never predict a right time. If you are investing with a longer term perspective you can enter any time. Ofcourse, a crash is the best time to invest. But there could be a short term correction in the recent future.

AMIN asked, IS IT THE TIME TO SALE RELIANCE INDUSTRIES SHARES, WHICH WAS PURCHSED ON 1031.00

PRANAV SANGHAVI CHAT answers, I think if you hold on you will see a profit on your trade.

bakhti asked, i have arround 10 lakhs invested instock market through mutual funds should a stay invested

PRANAV SANGHAVI CHAT answers, Yes you should. It will ofcourse depend on your investment goals and time frame. If you email me the details, I could revert back.

rohit asked, pls suggest regarding TeleData Infomatics. Is it a good buy at these levels?

PRANAV SANGHAVI CHAT answers, I am not a follower of the stock but from what little I know, I would stay away from the stock and rather focus on quality frontline stocks from Teledata's peer group.

Rajndran asked, How about SAIL today ?

PRANAV SANGHAVI CHAT answers, SAIL is trading around Rs. 75. Steel as a commodity will continue to see good demand for another 3 to 4 years atleast. But the stock will perform on the prices of steel. For that you have to closely follow the Metal Exchanges around the world.

rohit asked, RCVL is merged with Relcap. do you know when it will allocated to our account

PRANAV SANGHAVI CHAT answers, It will be within a few days of the record date. The trading has already been suspended.

murtuza asked, how about to invest in hindalco 165 and teledata informatrics 10

PRANAV SANGHAVI CHAT answers, Hindalco is a commodity stock. So the stock price will depend on the metal index. But fundamentally the company has an extremely strong balance sheet. I would look at the stock for a six month outlook. Regarding Teledata, I have answered a few queries back.

Rajan asked, what is with realty stocks ? ansal housing, Ansal Prop, Mahindra Gesco, should I get in now ?

PRANAV SANGHAVI CHAT answers, With the recent boom in infrastructure and construction companies all these stocks had witnessed substantial gains. But I think the Ansal stocks were grossly over valued. Mahendra is a quality stock but I would recommend to wait for a dip or a correction before entering.

PKJ asked, Can you please provide your Website / Email id from where we can get regular picks..even if at a charge.

PRANAV SANGHAVI CHAT answers, The people at rediff shall be setting up an email ID soon for you all to send in your queries. I shall not be charging you for the same :)

PKJ asked, Can you please give your views on Cipla at current price (about 245) for 6-12 months outlook. Also for long term what would you pick TCS / Wipro or Info in order of preference. (long term is say 2 year +)

PRANAV SANGHAVI CHAT answers, Cipla is definately a midcap pharma stock that you could look into. I think they recently got FDA approvals for a couple of their products. Both TCS and Wipro are promising companies. Both have very strong balance sheets and both are maintaining their growth. I would surely invest in them.

vivek asked, can u advice me on gujarat ambuja

PRANAV SANGHAVI CHAT answers, It is a buy and hold. The cement sector ha given phenomenal results and I believe they will continue to do so.

priya asked, Will Guj Mineral zoom like NMDC?

PRANAV SANGHAVI CHAT answers
, If some particular investor group does look at it, it could. But one should study the stock and if you believe it is available cheaply only then you should go ahead and buy.

PKJ asked, Reliance NAtural and Reliance Energy...I have entered at wrong time and currently over 25% down on the investment. Not much of movement in these scripts..do u suggest hold or book loss and move on ..if move on then which scripts..can hold for few months at least

PRANAV SANGHAVI CHAT answers
, I am not too conversant with the Reliance Natural's balance sheet. But REL you could surely hold on. They have big plans for the future. And most areas of India have huge shortages of power.

investor asked, should I buy ranbaxy,bank of rajasthan,andhra sugar,ACC at current level for short term investments

PRANAV SANGHAVI CHAT answers, Ranbaxy, BoR and Andhra Sugar are mostly news driven stocks. Everytime there is some news they spurt up or down. Ranbaxy though you could for a longer term. ACC is a good buy and hold. I would recommend buy at every dip.

Manan asked, Hello Pranav, How are you doing? What's your view on BHEL, Dabur Pharma, United Breweries Holdings & Harrisons Mallyalam for long term investments? Thanking you in advance

PRANAV SANGHAVI CHAT answers
, Hello Manan. I am fine thank you. All are excellent stocks. Harrisons Mallyalam I do not follow. The other three are strong perfomers.

investor asked, Future of ICICI Bank for next 2 months

PRANAV SANGHAVI CHAT answers, I am bullish on the banking sector and on the frontline stocks like ICICI, HDFC and SBI.

pam asked, there are many recommendations on oswal chemical & fert. pl advise whether it is wise to buy the stock now?

PRANAV SANGHAVI CHAT answers
, I would carefully study the company before investing in a B2 stock. It could be operator driven.

kapil asked, Which banking stock you are bullish on?

PRANAV SANGHAVI CHAT answers, I just replied to that query a couple of questions back. You could also look at Syndicate Bank and Allahabad Bank from the midcap banks.

anu asked, i m having 54 tcs.should i keep them for short run or long run.

PRANAV SANGHAVI CHAT answers, Hold them for the long term.

NAVEENKOTAK asked, WHT YOU THINK ABT MARKET IN NEXT MONTH

PRANAV SANGHAVI CHAT answers, Markets could witness a small correction. Post that it should stabilize and move up.

Manoj asked, What's your take on Aftek. It has net Rs.30 per share cash on B/Sheet and expected Annualised EPS > Rs.10 and its trading at just Rs. 60. Isnt it damn cheap and the target should be around Rs. 200 at least.

PRANAV SANGHAVI CHAT answers
, You will have to consider various other factors as to how it has performed over the last 4 quarters, are there any outstanding debts in the company etc. Various aspects.

anu asked, what about orient info share , i have 600 shares

PRANAV SANGHAVI CHAT answers, I am sorry I do not follow that stock.

pongo asked, Mr Pranav,What are your views on Deccan Gold Mines Limited,the only gold mining company listed on BSE

PRANAV SANGHAVI CHAT answers, I have not studied that stock. But if it is actively mining gold then the future of the stock should be good.

pardeep asked, please tell me investement on share y/n

PRANAV SANGHAVI CHAT answers, Yes one could put atleasst 25% of their investibile funds in to the stock markets.

anu asked, i have 400 bongai refinery shares. for what time i should keep them

PRANAV SANGHAVI CHAT answers, Yes you could hold on.

paramesh asked, hi

PRANAV SANGHAVI CHAT answers, hi

krish asked, what are prospects of bharat forge over long term how much retrurns i can expect

PRANAV SANGHAVI CHAT answers, It is again a steel commodity stock. But I would recommend a hold. Returns will depend on your time frame. I would rather set a profit target and get out when that is achieved.

umesh asked, Your Call on Maruti Udyog, do you think it advicable to enter at current levels or wait for a correction, I feel the stock is good, with respect to its recent quarter results announced recently, but then I am a lay man, would like to hear it from an expert

PRANAV SANGHAVI CHAT answers, The quarterly results and the monthly unit sales figures show that Maruti as a company is doing well. You could hold on.

Sushil asked, What, if Middle East including Iran Flares again vis-viz USA/West ? How sensex wold behave ?

PRANAV SANGHAVI CHAT answers, I didn't quite follow your question. Do you mean if the Oil rates flare u again? Well the first thing US and the west would worry about is inflation amongst other fears.

priya asked, Foursoft = midcap IT co focussing on Logistics line not doing well - can we hodl on to the shares

PRANAV SANGHAVI CHAT answers, I would recommend you swith to a fontline tech stock like TCS or Wipro.

Munu asked, Sir, What is the outlook for Repro India and why they have faltered immidiately after entering the stock market

PRANAV SANGHAVI CHAT answers, I do not follow that stock, sorry.

key asked, what is your take on L&T for 1 months time fram?

PRANAV SANGHAVI CHAT answers, Well for one month, 6 months or 1 year. My outlook will still remain a buy. It has a post bonus equity of Rs. 52 crores (US$ 11.5 million approx.) where as it has reserves of over Rs. 4000 crores (US$ 900 million approx.). And steadily rising annual income of over Rs. 1000 crores (US$ 200 million approx.). Plus it has oder book for over 4 years. All these make L&T a buy for me.

pardeep asked, Future of ICICI Bank for next 2 months

PRANAV SANGHAVI CHAT answers, I replied that in my earlier queries. Please refer.

anirvan asked, so how far do you see the correction taking us down if and when it comes and also the time period tentative,,

PRANAV SANGHAVI CHAT answers, I think a small correction could be round the corner. No one can predict when or how much.

scl asked, Hi Sir, I need your expert advise. I heard Jai Corp is investing in infrastructure and SEZ and is supported by Reliance. Anand Jain promoter has already raised Rs.10000 crores for SEZ's. Jai Corp stock price may scale upto Rs.10000/- in a matter of time. ie one year. As promoters has 90% stake in Jai Corp , they may delist and reissue shares at premium. Please give reply and your expert advise is required at this hour to make gains for future. Please reply. Thanks a lot.

PRANAV SANGHAVI CHAT answers, With so many queries in one question, I would recommend you send me an email on the same.

Nagaraj asked, Hi Pranav Should I buy RNRL at present level?

PRANAV SANGHAVI CHAT answers, I would wait for a few quarters and see the performance first.

mahendra asked, Sir, I have purchase Marksans Pharma 200 shares @ 155.00 whether the stock will its 52 weeks high at Rs. 400.00

PRANAV SANGHAVI CHAT answers, I don't follow the stock. But I would recommend you switch to a frontline pharma stock.

ramkiong asked, Hi, What abt buying WIPRO at 515 and Satyam at 780 ?

PRANAV SANGHAVI CHAT answers, Both look good to me. Both have performed well and the growth should continue.

Sweta asked, Sir, do you think stars/planetary positions have any effect on the stock market?

PRANAV SANGHAVI CHAT answers, Haha. I am not a believer of that ideology. I am a strict fundamentalist.

Vincent asked, Please give your views on 1000 BSEL Infa bought at 37.15 in the near term. I sold 250 at 47.45 Yesterday

PRANAV SANGHAVI CHAT answers, You already are a smart trader. You made a good profit. Invest the profit outside the market and reinvest your funds in a quality mid cap stock.

Mitul asked, do you track Avance Technologics? what's the future?

PRANAV SANGHAVI CHAT answers, I don't follow that stock sorry.

Arindam asked, Do you have a view on Biocon?

PRANAV SANGHAVI CHAT answers, I am not too bullish on them. They will have to perform in the future.

pongo asked, Sir What is your opinion on ITC and HLL.Which is a better buy taking into account a long term perspective

PRANAV SANGHAVI CHAT answers, I like both stocks as HLL is more like an institution. But ITC has a very strong balance sheet, big plans for expansion in the Hotel sector etc. I would go with ITC which I have been saying from my initial chats.

scl asked, Whats your take on Geodesic. It has come up with new innovative product called munduspeak which will reduce telephone costs by 90%. This will affect Telecom companies as well. Do you think is it the right time to enter Geodesic and pls. give target price as well.

PRANAV SANGHAVI CHAT answers, 
I don't follow that stock. Although I think there was some negative news about the stock recently.

anirvan asked, what are your views on mahindra gesco and on a different note the tea sector?

PRANAV SANGHAVI CHAT answers, Mahendra Gesco is developing some good properties. It should do well provided the Property market bubble does not burst as a few industry veterans like Mr. Deepak Parekh have predicted.

Sweta asked, What is your say on RNRL in coming 1 yr? What is the target i should look at?

PRANAV SANGHAVI CHAT answers, I have answered a similar query earlier please refer.

solankijii asked, gud afternoon sir, where u seen mahindra gesco in upcoming days...?

PRANAV SANGHAVI CHAT answers, Good afternoon. I just answered that query.

antony asked, how to get mcx values in my site

PRANAV SANGHAVI CHAT answers, You will have to speak with the Technical team at MCX and probably they will charge you for a live feed.

pongo asked, Sir is it true that Motilal Oswal have picked up a huge stake in Deccan Gold Mines Ltd,looking at the future prospects of the Company

PRANAV SANGHAVI CHAT answers
, I am not aware of the same.

Vincent asked, What about the sugar pack, especially Upper Ganges sugar, Balrampur chini & sree renuka sugar

PRANAV SANGHAVI CHAT answers, They have witnessed two years of growth. I would stick with the frontline like Balrampur and Hind. Bajaj. But only after the valuations look cheap.

Sunmoon asked, I have invested in few stocks, & in totality they have give me a decent profit. Is this the right time to sell those stocks?.

PRANAV SANGHAVI CHAT answers, It will depend on what your investment outlook, time frame and profit target. I would need to know these to give you a reply.

Sweta asked, Sir, What is your sugesstion for investing? Which sector should I invest in right now?

PRANAV SANGHAVI CHAT answers
, In my earlier chat, I had mentioned that cement, tech, pharma, infrastructure and banking stocks should do well. Stick with the frontline quality stocks. And buy at every dip.

bharti asked, I m new and want to purchaghe some share.please guide me thank u.

PRANAV SANGHAVI CHAT answers, I would recommend you do a short 2 day basic course on Stock Markets which both BSE and NSE offer. After that invest in the A group shares. Do not invest in companies on other people's recommendation and hearsay.

pongo asked, Sir your opinion on GKW Ltd,with real estate as the USP

PRANAV SANGHAVI CHAT answers, They were planning on developing their property in Mumbai. That could spurt its profitability in the future.

pongo asked, Sir your view on Pokarna Limited, which is into business of granites and garments

PRANAV SANGHAVI CHAT answers, I do not follow the same sorry. But if they are exporters then a rising dollar would benefit them.

MANIPUR21 asked, HNDUSTAN LEVER IS PURCHASE DURING MARKET PRICE FOR INVESTMENT AND BONUS IS GIVEN DURING THE YEAR
PRANAV SANGHAVI CHAT answers, I don't think HLL has announced a bonus.

akula asked, How are the pharma stocks valued today? Do you see big appreication in a 1 year time?

PRANAV SANGHAVI CHAT answers, There is a talk about drug price regulation again from the left front that could affect some of the pharma stocks. But overall the pharma sector should perform well.

pongo asked, Sir could you please throw light on some stocks which are potential market leaders of the future,but till date have been either ignored or overlooked by the market

PRANAV SANGHAVI CHAT answers, I have mentioned some stocks in my previous chats. Please refer.

anuy asked, can u advice me on dujanwala paper stock

PRANAV SANGHAVI CHAT answers, I do not follow that stock sorry.

Keval asked, Pranav, How about Reliance natural gas, There was a lot of expectations from this new company from the reliance stable, but the stock prices have been dormant for a long time after the plunge it took. Is it worth holding on to and cutting the losses?

PRANAV SANGHAVI CHAT answers, If you are a long term player you could hold on.

tk asked, what is your view in Ashok leyland for next 2 months. Will the price go up further upto 55 rupees?

PRANAV SANGHAVI CHAT answers, I do not know about price targets but the unit sales figures should be studied for the last 12 month period. If they are steadily rising so will the stock if the costs are kept in control.

AmitBh asked, Hi Pranav, I want to invest in the srocks but as the market is very high going right now. Any market correction is in near future?

PRANAV SANGHAVI CHAT answers
, There could be a small correction in the near future.

Rajashekar asked, i have bought Ispat 1000 shares & uco Bank 1000 Shares at 12.25 & 17.50 respectively..please advice me when to sell them

PRANAV SANGHAVI CHAT answers
, It would depend what is your profit target for the same. Once you achieve the same you could sell.

karthik_indian asked, Is it mandatory to file informations on my stock holdings while filing IT returns? Request you to clarify pls.

PRANAV SANGHAVI CHAT answers, Yes it is.

pongo asked, Sir you have not yet answered a single query of mine???????

PRANAV SANGHAVI CHAT answers, I think I have. Please scroll back.

Deepak asked, Hello Mr. Pranav, Good afternoon. Can you tell me the future prospect of IVRCL Infrastructur Project Ltd. I have purchased it at Rs. 230/-. Can I hold it for long term?

PRANAV SANGHAVI CHAT answers, According to me the Infrastucture sector should perform well over the next 4 to 5 years. You could hold on with a long term view.

siya asked, Hi, Mr.Sandhavi, i am holding karur vysya bank 300, unitech 500

PRANAV SANGHAVI CHAT answers, Hi Siya. Both are good stocks and you could hold them.

MANIPUR21 asked, MY STOCK IS LONG TIME KEPT BUT THIS TIME CURRENTMARKET SHARE PRICE IS NOT SHOWN IN STOCK MARKET i.e. westcost breverage ltd, bharat berg ltd, khaitan hostamb ltd, & globel telemarketing ltd. can i know for current market price.

PRANAV SANGHAVI CHAT answers, I think most of them have been either suspended or delisted. Do check with your broker for the same.

Rocky asked, Do yoy think it is the right price to enter L&T considering the impending bonus issue?

PRANAV SANGHAVI CHAT answers, Yes one could buy for the bonus.

rajiv asked, hi pranav, i want to know which stocks we can enter at this time with a good returns for a long term basis of 1 year

PRANAV SANGHAVI CHAT answers, I have given replies to simillar queries in my previous couple of chats please refer.

mahmood asked, your opinion about elder pharmaceutical. what will the maximum and minimum rate in another 6 months time approximaterly

PRANAV SANGHAVI CHAT answers, A lot of changes have been made in company which have resulted in positive results.

patience asked, Pranav bhai! What is the best way for a novice to learn the tricks of stock market?

PRANAV SANGHAVI CHAT answers
, By enrolling for atleast 2 to 3 basic and advanced courses being offered by the BSE and NSE for investors.

kris asked, Which 5 shares do u advise if I want to invest for a term of 2 yrs

PRANAV SANGHAVI CHAT answers, I have answered similar queries in my previous chats please refer to the chat transcritps. Thank you.

PRANAV SANGHAVI CHAT says, Well it surely has been a pleasure chatting with you all. It's time for me to go but hope to see you all next week. Bye.

Chat with Pranav every week!

 

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