As the Sensex started edging downwards on August 16 nervous traders at the Bombay Stock Exchange traders wondered if it was going to be an August 1 type blood bath when the BSE Sensex slipped below 15,000 points losing over 560 points in afternoon trade on the back of extremely weak cues from the global markets. August 16 fall, however, proved to be even worse.Did you make losses while the Sensex nose-dived? How do you plan to regain your ground? What should your investment strategy be? Should you invest more in the market? Or should you consider selling stocks to prevent further losses? What would be the best stocks to buy, sell or hold at this juncture?
In an hour-long chat on rediff.com, market expert Pranav Sanghavi answered readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon everyone and welcome to the chat.
mk asked, What is futur of RNRL and di-listing of essar steels?
PRANAV SANGHAVI answers, at 2007-09-12 12:05:26RNRL should rise steadily over a period of time. You could accumalate at lower levels. Essar already holds close to 87% of the stock. I don't think the investors will give the stock at the current offer price. I think a price of around Rs. 50 would be a better bet for Essar.
ajay asked, what is future of manalipetro and assam company
PRANAV SANGHAVI answers, I don't follow either of the stocks. Sorry.
joe asked, do you think that the correction phase is over and the market is consolidating at the moment?
PRANAV SANGHAVI answers, One cannot rule out corrections form a market. We still have a few events this month like the Fed meet on the 18th etc. But markets look to be in the consolidational phase and look to move up steadily till october when we could see a correction again poost the quarterly results rally.
anil asked, I bought BHEL at 2000. Should I sell at current levels or hold. What about Sangam India, I bought it for 70. Hold or book loss?
PRANAV SANGHAVI answers, I would still continue to hold on to BHEL. It is an equally strong company as L&T only its in the governments fold. Sangam I don't follow sorry.
Nasir asked, wat will rnrl do today
PRANAV SANGHAVI answers, I don't give intra day calls Nasir. But you could look at the stock with a 1 year outlook.
rajesh asked, which share should i purchase which will give me highest return within six months?
PRANAV SANGHAVI answers, No one can predict which single stock will give the best result over a period of time. But you would be safer with the frontline stocks like RIL, SBI, L&T, BHEL, and some midcap stocks like NTPC, IDFC etc.
pravin asked, is there any chances of market again witnessing august lows?
PRANAV SANGHAVI answers, You cannot rule that out. But to me it looks very difficult.
piyush asked, I bought Mindtree for 800 and curent price is 575 ... what is the future of this stock ?
PRANAV SANGHAVI answers, I think it will take some time for the price to regain its previous highs. But the company looks to deliver steady growth in profits.
abcd asked, I have 400 shares of Praj Industries bought at Rs 248 should I hold on to the same or book the loss? I can wait for 6 months provided the returns are going to be good.
PRANAV SANGHAVI answers, I think it has been moving up the last couple of days. I would surely hold on. You should get returns on the stock if you hold for 6 months.
dinesh asked, What is the future for equities bought at BAJHIN at RS. 180 , bALCHI AT Rs. 108 and SIMSUG at Rs 108
PRANAV SANGHAVI answers, As I've said in the past since February or March, I don't think the sugar sector will be able to perform this year atleast.
sunita asked, i bought 1000 binani cement at 77 Rs... should i hold or book profit
PRANAV SANGHAVI answers, I would hold on. It is a midcap cement stock but all cement stocks will give good quarterly results for the next few quarters.
alakh asked, I have 85 shares of Deccan Aviation @ 148/- for one year. Should I hold or quit? what is the future of Deccan Aviation? Can you Can I invest in Bartronics India?
PRANAV SANGHAVI answers, Aviation industry by itself is a risky business. Very few have been able to make consistent profits. Deccan has been acquired by the UB group and they plan to make minor changes which could benefit the airline. But I would stay away from aiviation stocks. Yes you could look at Bartronics.
vidhya asked, purchased fsl at 83, wats the future head
PRANAV SANGHAVI answers, I think you could hold on with a 20to 30% return over a years time.
pravin asked, almost all the brokerage firm and technical analysts were of the view that market will fall to 12800/12300 levels. hence they did not issue any buy call during the fall. so neither they nor their clients took advantage. so what will be their strategy in coming days? they will expect one more fall or to buy current levels?
PRANAV SANGHAVI answers, If you were following my chats, I did recommend to buy especially on days when the markets were down 500 to 600 points. If people had bought they would be sitting on 15 to 20% profits in a months time. And like me a few brokerages had initiated buy calls to their clients. but everyone is entitled to their own views. That is why you must asses the situation and take your own calls finally. I would not take any major poistion either buy or sell side of the market till the 18th FED meet is over.
pravin asked, does the IT stocks bottomed out or there is more blood shedding expected in the days to come?
PRANAV SANGHAVI answers, The Rupee has been appreciating so there could be more downside to the IT stocks. I guess once the Spetember quarter results are out we will know if they have been successfull in tackling the Rupee appreciation problem.
svbahirat asked, what is future of ongc 840 call
PRANAV SANGHAVI answers, ONGC is a oil stock. So the movement will depend a lot on the movement of Crude Oil prices. The crude right now is trading at higher levels. But fundamentally ONGC is a strong stock and one can take a long term view on it.
anwar_qs asked, Good Morning! I am new to Shares and want to Invest 5 lacs in the same with High returns. Please guide, u being the master in it.
PRANAV SANGHAVI answers, If you are new I would suggest you go through the Mutual Fund route. You could look at large cap diversified funds with growthschemes. If you do invest directly, I would suggest stick with the frontline stock which tank at time of corrections but also bounce back as quickly which is not the case in midcap stocks.
Pallan asked, Good afternoon Pranav, what is your stake on RNRL, Tata Tele and Rel.Com? Do you forsee an imminent correction in the market due to political uncertainties?
PRANAV SANGHAVI answers, I like RNRL and RComm. More the latter. Political problems are at bay for a while. But they will surface at some point. But on cannot rule out corrections in the market.
PRIYANK asked, VISHAL EXPORTS,, RESULTS ARE TO BE ANNOUNCED THIS MONTH END. WILL IT TOUCH 3.50 MARK ?
PRANAV SANGHAVI answers, They have made rosy projections during their IPO and listing ceremonies. If they deliver on the same then the stock could move up.
PRIYANK asked, VISHAL EXPORTS,, RESULTS ARE TO BE ANNOUNCED THIS MONTH END. WILL IT TOUCH 3.50 MARK ?
PRANAV SANGHAVI answers, I am sorry I thought you mentioned Vishal Retail. Vishal Export I don't follow sorry.
pravin asked, what formulas or software does technical analysts use to find out resistances and supports? is it fibonacci retracements and pivot point only or there are various other formulas. if yes can you name few?
PRANAV SANGHAVI answers, There are tons of formulas, data and algorhythms that analysts follow and calculate for technical study. Fibonacci principles are also followed by a few.
anwar_qs asked, What r the TAX liabilities for trading in Stocks.
PRANAV SANGHAVI answers, For short term capital gains one has to pay 10% tax and for long term capital gains one is exempt from tax if the stock is included in the approved list.
shekartunga asked, hi how ru
PRANAV SANGHAVI answers, Hi Shekar, I am fine thank you. What is your query?
mohammed asked, hi pranav i had alloted Tanla Solution should i hold or i skip & also invest in Infosys @ Rs. 2025/- should i got good return with in 1 year
PRANAV SANGHAVI answers, You could book profits in Tanla and exit. You may see your price in a years time. It will totally depend on the Rupee appreciation factor and how well the company is able to combat it.
sw asked, hi Pranav, can you guide me w.r.t Indian Hotels and Datamatics pleeeeeeeeeaaaaaaaassssssssssssseeeeeeeeeeeee
PRANAV SANGHAVI answers, Hi SW, Indian hotels is a fundamentally strong stock and is on a major expansion drive. They have acquired various hotels over seas and are planning to develop a large number locally also. I would hold on. Datamatcis also can be held.
Jaimon asked, Hi Pranav,I have 50 bajaj hindustan @167 and 100 Syndicate Bank @83 what is the future of these stocks
PRANAV SANGHAVI answers, Bajaj Hind I would exit and look at a growth stock. Sydicate you could hold on. Most of its NPA issues look to be resolved and it should give good quarterly results and thus move up.
Prasad asked, Hi,
PRANAV SANGHAVI answers, I would not buy into the stock with its recent minor rally. I would look at a completely different sector rather than aviation.
pamela asked, hi pranav i have 3000 shares of STERLITE INDUSTRIES LTD at an price of 680.now it is quotiong around 600.i have suffered a loss of rs 80 per share amounting to 2.5 lac rs.wht should i do hold to recover my losses or sell ? my stupid broker has asked me to buy more.plz advise pam
PRANAV SANGHAVI answers, Hi Pamela, I would surely hold on to the Sterlite stock. Althoug it is a metal stock and commodity stocks tend to be cyclical but I think you will soon see your price and at that time you could swith a part of your holding to another metal stock like Tisco.
PRIYANK asked, WHAT R THE PROSPECTS OF IT STOCKS LIKE WIPRO ??
PRANAV SANGHAVI answers, Wipro with its March end results whould be well over Rs. 700 mark. But the Rupee appreciation factor looks to dampen its growth and profitability therefore the stock is around Rs. 460 levels. I think if you make a contrarian call and buy the stock with a 1 year outlook atleast you should see decent returns on the stock.
Jaimon asked, Which are the best sectors to look forward in current fiscal year
PRANAV SANGHAVI answers, I think Infra stocks, Real Estate stocks, Banking, Cement, Steel and heavy engineering should do well.
ram asked, i have 1000 shares of federal bank ltd, should i hold & can me guide me about this shares future.
PRANAV SANGHAVI answers, Yes I would hold on.
shuklash asked, Hi Pranav, I would like to invest 10Lac rupees into MF for 10-15 years.. would you recommend SBI Contra and Magnum Global for this ??
PRANAV SANGHAVI answers, I would rather go with SBI's growth fund and also spread the amount into a couple more Mutual Funds like HDFC, DSP ML, Templeton etc. Contra Funds may not always give you returns like growth funds.
raghav asked, any bonus or follow on issue of ntpc
PRANAV SANGHAVI answers, I have not heard of any such news. But the stock is a strong stock and one should acquire at dips or corrections for 6 to 12 month outlook.
pravins asked, unitech issued a bonus of 1:1, and record date was on 31st august. but i have not yet received the bonus shares. can you tel me generally how much time it takes to receive the bonus shares?
PRANAV SANGHAVI answers, If it is in physical form it can take time due to postal delays but if the stock is held in demat within 2 to 3 working days the shares should be credited to your Demat account unless you bought it Ex-bonus.
PRIYANK asked, WHEN IS MKT FALLING ?? I HAVE 10 LOT OF NIFTY PUT ?? MKT HAS TO CORRECT ISNT IT ?
PRANAV SANGHAVI answers, Markets may correct aroudn the 18th but if things go well then they move up also. It doesn't have to correct. As only a couple of weeks back we witnessed sharp corrections.
dhiraj asked, IDFC @ 110 RIL @ 1820 Tera Soft @ 80 What I can do now?
PRANAV SANGHAVI answers, Hold.
Chintu asked, Hi Pranav what you think of Unitech will it break its high for the last 52weeks
PRANAV SANGHAVI answers, The previous high is of the Cum Bonus rate. But the stock will surely appreciate after consolidating.
Sunil asked, Hi pranav.... L&T not moving beyond 2600 levels ... Can you tell me the reason ?..WHat is ur opinion about this script ?
PRANAV SANGHAVI answers, There is a talk that L&T is planning to demerge 3 of its businesses which are non core like shipping, Infotech etc. But it is not yet confirmed. If it is true then each shareholder would get 2 or 3 more shares of the demerged entities. Also L&T has a small capital of Rs. 56 crores and last March it recorded a proit of around Rs. 1400 crores. It also has reserves of over 4500 crores. So one cannot go wrong with this stock.
srinu asked, i have 500 shares @ 548.5 of indiabulls finc services wht shd i do?
PRANAV SANGHAVI answers, You will have to hold on.
shivanand asked, wat is the target for rcom in one month period
PRANAV SANGHAVI answers, I would look at the stock crossing Rs 650 but in about 3 months time.
deepakverma asked, Sir, I have Infy 200 shares @ 1890,, Please advice when I can expect the stock to rise again?
PRANAV SANGHAVI answers, it may be a while before you see those rates. But I am sure you will.
MURALI asked, IFCI I BOUGHT AT 65 CAN I HOLD OR SELL, IF HOLD HOW LONG
PRANAV SANGHAVI answers, I would not sell the stock. I would hold it for atleast another 6 months and then take a call.
GT asked, Hi , Whats ur opinion on the Power Grid IPO?
PRANAV SANGHAVI answers, I think it is a fairly priced IPO with about 15% left for the investors. Also the power sector looks to grow rapidly over the next few years as we are a grossly underpowered country.
chintan asked, Hi Pranav..You track Parsvanath Developers?
PRANAV SANGHAVI answers, No but I would look at Unitech or DLF.
piyal asked, Can I enter Motilal Oswal at present rate?
PRANAV SANGHAVI answers, They should grow at a handsome rate so you could on any dips.
Tejas asked, Hi, i have purchased IFCI at 58 & Sell at 70. Now this stock picks up so shall i purchase at 78? what the next target of IFCI? Wait for some correction in mkt?
PRANAV SANGHAVI answers, I would wait for the price to move down a little bit before entering.
Don asked, I have DLF at 631. what do u think about it? I can hold for 6-12 months? Should i buy more at dips/correction?
PRANAV SANGHAVI answers, It has already moved up by 6 to 7% since I mentioned it a couple of weeks back. I would look at it with a 1 year outlook. You should see handsome returns even from current levels.
Aniruddha asked, Hi Pranav I have pulled out 75% of my portfolio yesterday booking 8% of profit on investments made in Aug1 & Aug16 fall. What do you say about the current mkt, any correction around the corner? My next picks would be Punj, Bhel, REL, ALstom, Praj, Voltamp, RCOM, Bharati, HCC, L&T, JPASSOC, Kotak, PFC, RCAP & Everonn Please comment on this
PRANAV SANGHAVI answers, A correction cannot be ruled out. If the US markets tank majorly on some bad news there will be some repurcussions in our markets. but we have just witnedsed a major correction so I don't think we are due for one immediately. But beyond october we could if the market valuations again go beyond 19 PE.
Pranavsfan asked, Hi Sir, I have 1000 shares of Teledata. Can I hold? Any news about Bonus Shares? Kindly guide me.
PRANAV SANGHAVI answers, I think they annoiunced the demerger or 3 subsidiaries. So wiat for the free stocks. You should see value creation.
uday asked, Hi Pranav, Nice to have you on rediff. What is your idea about Aban Offshore in the next 6 months
PRANAV SANGHAVI answers, Hi Uday, thank you. Aban is one of the leaders in the offshore drilling sectors. One can surely look at it with a 6 to 12 month outlook.
nilu asked, CAN WE STILL ACCUMULATE CROMPTON AT 322 PRICE LEVEL FOR LONG TIME INVESTMENT ?
PRANAV SANGHAVI answers, Yes I still like Crompton even at current levels.
Vikas asked, Looking at the current market scenario, how much return is expected from the Mutual Funds in next 8-10 years?
PRANAV SANGHAVI answers, If you look at historica figures then Stock markets on a 30 year term has given around 32% return annualised. If you look at shorter period of 8 to 10 years they have delivered around 12 to 14 % depending on which decade you take discounting abnormal price rises like the ones during HM and KP's rallies. So you could eaily look at a conservative figure of 6 to 8% return.
Oldkid asked, Hi Pranav...What's your call on LANCO, IVRCL, DLF, GMRInfra.. Plzzzzzzzz tell.
PRANAV SANGHAVI answers, I am bullish on GMR, DLF, IVRCL.
Manish asked, Hi Pranav! i want to ask, whether Tata steel shares will reach Rs.800+ this time?
PRANAV SANGHAVI answers, I think Tisco should cross that figure in the time to come. But it is a commodity stock and there will be price fluctuations. But look at Tisco with a 1 to 2 year time frame. I think you should see good returns.
sidp asked, Hi Pranav, can you pls advice on Tech Mahindra.I have bought it at Rs 1800
PRANAV SANGHAVI answers, Well you have bought the stock at higher levels. But I am bullish on the stock. It is only the Rupee appreciation problem which is making it lag. It was already projected to grow handsomely and then to top it off it bagged a US$ 1 billion contract from its parent BT to be delivered over 5 years which translates to additional sales of around Rs. 800 crore per annum. Plus the balance sheet is fundamentally strong.
tejaspateljunior asked, hi, I got the NTPC from IPO & still i have not sell it. How long i have to wait? what should be its price after 1 year?
PRANAV SANGHAVI answers, I think NTPC is going to rise steadily. India is an underpowered country and new projects are being set up rapidly.
PRANAV SANGHAVI says, Well its been great chatting with you all. Hope to see you'll next week. Bye for now.
Chat with Pranav every week!