Indian markets achieved yet another milestone on October 09. It opened positive and soon hit a new high, it crossed 18,000.
Did you make gains while the Sensex soared?
How do you plan to consolidate your gains? What should your investment strategy be now?
Should you invest more in the market? Or should you consider selling stocks? 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 many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon all and welcome to the chat. We witnessing unprecedented rally in our markets. It's absolutely euphoric times in the market. Let's begin.
hello asked, Where is the market heading...
PRANAV SANGHAVI answers, at 2007-10-10 12:06:15With a 3 to 5 year term surely upwards. In the short term due to Elections scare or any other reason there could be a correction. Although, as I have mentioned earlier in chats I do expect the corporate performance to be good for the last quarter.
saurabh asked, HI. I bought a lot of Reliance Industries at RS. 2621. What do you think of what will happen now that the SENSEX has crossed over 18,000... Will we still see a correction in this month?? Thanks
PRANAV SANGHAVI answers, I look at stocks fundamentally and right now it looks heated up, so I would expect a correction during the month but I am expecting good results for the last quarter so it could be due to Political reasons that we seea correction.
Raj asked, Where will infosys shares move to ? what is the best selling price i can expect this quarter and when ?
PRANAV SANGHAVI answers, I won't be able to give you a price target as I am not a technical analyst. But I think Infy will give neutral or marginally positive results rather than extremely negative. That looks to have been discounted in the price as the stock has moved from Rs. 1750 to Rs 2000 in the last month.
Naresh asked, Hi Good Morning Pranva
PRANAV SANGHAVI answers, Hi and good afternoon to you too Naresh.
Kanunga asked, Hi Good Morning Pranv I would like to know is LNT & BHEL is it good to buy at the current market price. Is correction is some where around. Would you like to wait for correction to enter it into this stocks
PRANAV SANGHAVI answers, Currently all stocks are over heated. I would rather wait for a dip to get into the stock. And a minor dip like on Monday did not dent the L&T price a lot. If you are long in the market then hold on with higher stop losses. If you are in cash then wait for the correctional dips. But I think both stocks will out perform the markets over the next few years.
ds asked, Hi can u pls tell me the future prospect (1 year) of Petronet please. Thank u
PRANAV SANGHAVI answers, You should see a 25 to 30% return on the stock over a 1 year time frame.
dhiraj asked, whats the target of ifci & aftek
PRANAV SANGHAVI answers, IFCI will depend on the valuation the company receives and thereafter on the future plans of the new entrant in to the company for the company. Aftek I don't follow sorry.
Vinthi asked, hello sir ,what is the target for Power grid
PRANAV SANGHAVI answers, I think there is a fair amount of demand for the stock even with institutions and I would continue to hold. A 50% jump in a years time could not be ruled out.
mkandy asked, hi pranav,what is the short term look for IFCI. I have email@example.com i hold or exit.?
PRANAV SANGHAVI answers, I think you could hold for a bit till you see your rate. Then you may book profits and wait to see what valuation the company gets from the new investor.
raju asked, What should be next move for Parsvnath [bought @ 425/-], Cinemax [@ 55/-], Spice Telecom [@ 52/-]?
PRANAV SANGHAVI answers, You could hold on to the latter two. Parsvanath I would switch to a DLF or Unitech on dips.
supreetha asked, Hi, I would like to know about Birla Capital and Finance Services...Is it good to invest in that??
PRANAV SANGHAVI answers, You could look at it with a one year outlook. It has strong fundamentals and looks to be marginally underpriced.
anand asked, hello sir ,plz answer about IFCI and SAIL
PRANAV SANGHAVI answers, SAIL can surely be held. IFCI I would wait and watch as to what is the outcome from the bids from the short listed bidders.
ravi asked, hello pranava what do you think about Ispat Industries i am long term investor planning to buy 1000 shares. Please comment . Thanks
PRANAV SANGHAVI answers, There is some news in the stock but as I have mentioned earlier unless the promoters pump in further funds I don't think the stock would do much. Unless there is some story that we have not yet heard of like Real estate etc.
RAJIB asked, Sir ur view of DLF
PRANAV SANGHAVI answers, I am pretty bullish on DLF and I would continue to hold on. But I would not take fresh positions at this rate and wait for a dip.
RAJIB asked, RPL & RNRL can i hold or sell?
PRANAV SANGHAVI answers, i would hold on.
ps asked, Should I book profit in IT now or wait for some more tiem ?
PRANAV SANGHAVI answers, I would wait for Infy results tomorrow before taking a call on the IT sector.
Adharsh asked, Hi Pravav, I had invested around 1.5 lakhs in RIL, RCom, DLF, Tata Steel, India Cements, BoI, UCO Bank, Nagarjuna Fertilizer since 3 months ago. Now they have appriciated around 40%. what should i do sell or hold?
PRANAV SANGHAVI answers, If you are not a short term investor then continue to hold on. I think you have made a good spread of investments.
jagadishk asked, AT what levels can i enter into L&T and DLF??
PRANAV SANGHAVI answers, If you look at both of them with a 2 to 3 year perspective then you could enter even now. But if you are a shorter term player then I would wiat for a 10 to 15% correction atleast.
ps asked, I am a long term investor. What all sector shoul i book profit in ?
PRANAV SANGHAVI answers, All the double digit stocks that have run up for no reason. Also some of the midcap stocks. The frontline stocks you could continueto hold on to. Cement, Real Estate, Infrastructure, Banking and Telecom look good to hold on to.
Pankaj asked, Hi , I want to ask that If a stock daily opens and reaches it upper circuit limit ,does it get freezed for whole day . Cant I buy that share ? This is quite unethical because some shares are rising like anything beacuse of this only and people dont sell them
PRANAV SANGHAVI answers, I would stay away from these stocks unless it is a largecap stock. As most of these stocks are operator driven. But if you put in a quote and the circuit does open up then you can get the shares.
mukesh asked, what about power grid wheather buy or wait for down
PRANAV SANGHAVI answers, Below 100 then you could start accumalating.
Don asked, What about entering Reliance Infra, Unitech, BHEL at this level?
PRANAV SANGHAVI answers, I am a bit skeptical at these levels as the markets are at their euphoric best. But on dips you could surely look at these stocks with a long term outlook.
monmohan asked, I have Astra Microwave 1500 @ 230/- Please suggest what to do should I book Loss and where to invest to cover up I am invested since 2 yrs.
PRANAV SANGHAVI answers, you oculd book losses and switch to a growth stock like Bharti, RIl or RCom but on dips.
sunil asked, sir, i have 1588 shyam tele link share but still it is not listed in bse pl tell me when it will be listed
PRANAV SANGHAVI answers, You would have to write to the company to enquire about the same.
Don asked, Do u see any correction in near future? The markets seems to be growing with fundamentals or just abrupt investment? But it touching new highs every week, what do u think where it is heading towards? What do u feel will be the impact of festive season coming near?
PRANAV SANGHAVI answers, Just when one thought on Monday that the much awaited or touted correction is here the markets bounce back the next day and give their highest singleday rally and that too of nearly 1000 points from its days lows. So predicting whenthe correction will come is difficult but it should come as no market can move only upwards. At some point prices/valuations will have to get realistic.
vaishnavsantosh asked, Hi Parav, I had invested 25K in Icici infrastructure mutual fund, 14K in hdfc core & setelite fund, 5K in fedality special situation fund and had started SIP of Rs. 2000/- PM in frnklin flexicap, Now i want to invest abot 50K kindly advise.
PRANAV SANGHAVI answers, Look at gorwth funds which are large cap and diversified. But invest in the time of the correction so you get a lower NAV and more units.
Don asked, RCom, DLF, HDFC Bank. Hold or Sell?
PRANAV SANGHAVI answers, Surely hold with a 6 to 12 month outlook. If you are looking at less than a month then maybe book some profits.
indioyogesh asked, What is the future 4 Central bank of india ? i have purchase 4 Rs 102 current 130-131 ???
PRANAV SANGHAVI answers, It looks to continue its good performance. I would hold on to the stock. With talks of the interest rates moving lower in the next 6 months the banks look good buys.
mrprasad21 asked, which are hot shares for intra day
PRANAV SANGHAVI answers, Intraday trading is extremely risky. It should be avoided unless you have the time to sit in front of the terminal and analyze charts. You should look at index heavy stocks like RIL, Bharti, SBI, etc.
Hemang asked, Hello sir, I have fortis healthcare 265 shares taken when IPO released, @ Rs.110. what should I do, the price is just not rising
PRANAV SANGHAVI answers, I would switch to a quality growth stock.
bnrajesh asked, i have 100 shares of Bank of india should i hold on i have bought it at 120
PRANAV SANGHAVI answers, I would surely hold on.
vikaskumar asked, How do u see correction due - light or heavy,
PRANAV SANGHAVI answers, With this rise I think a 10 to 15% could not be ruled out. If there is talk of election then it could be heavier.
gauravk asked, GA Pranav, i just want toknow the short tem future of HFCL . i am 2000 share @ 25.5. what is ur short term view.
PRANAV SANGHAVI answers, I would exit and switch to a better quality stock.
Surya asked, Good morning..I have applied for Maytas IPO.. as soon as i get them.. should i sell them for listing price or hold them for future..
PRANAV SANGHAVI answers, It is in the infrastructure real estate sector which is in a bullish phase. So you could hold on andsee how the company performs overthe next few quarters and then take a call.
ps asked, Can you please suggest good mid caps from Power and Capital Goods?
PRANAV SANGHAVI answers, NTPC, Power Grid, Praj, Cromptom etc.
navsg asked, whats your view on bharat bijlee and varun ship ?
PRANAV SANGHAVI answers, I would hold on to Bharat Bijlee. Varun also has gone in for expansion and acquired new ships which should show results in FY08 and FY09 earnings. So I would hold on. Shipping is a cyclical sector but it looks the bouyancy will continue for some more time.
Disha asked, What is the outlook on Jet Airways and Ranbaxy
PRANAV SANGHAVI answers, Aviation is a tricky industry and the competition is only heating up. Although Jet has started new sectors overseas I would still wait before entering the stock. I would rahter go with a Dr. Reddy.
mats asked, wht happned to powergrid? I brought @ 103... Should i hold or sell?
PRANAV SANGHAVI answers, i think you could further accumalate at lower levels.
Don asked, What about entering Reliance Energy, ONGC, Praj Ind, NTPC, Tata Steel, Reliance Infra, BEML at this stage?
PRANAV SANGHAVI answers, I think all of them are flared up. I would wait for a correction. Putting in additional money at this juncture looks risky to me. Even in quality stocks.
gautam asked, Where do u see the market on 2015
PRANAV SANGHAVI answers, Hopefully 40,000 or higher.
Joe asked, Hi Pranav !
PRANAV SANGHAVI answers, Hi Joe, I think they both will out perform the markets. But get in on dips.
anand asked, this is complete failure of REDIFF he has not confirmed from pranav if he will attend chat or not
PRANAV SANGHAVI answers, I have replied to quite a few questions, I am surprised you are not seeingthe answers.
seddy asked, Would this be the right time to invest or do we wait for a correction? Going by the laws of nature, what goes Up has to come DOWN
PRANAV SANGHAVI answers, Wait for the correction. And that law does apply in most markets. But we seem to be in space right now where gravitational laws are not applying currently at least.
Hardik asked, should i invest my money and where could i
PRANAV SANGHAVI answers, Historically, stock markets are second only to real estate if you look at 10, 20 or 30 years time frame in terms of returns. Consult a broker and invest in the markets.
ramesh asked, which stock is better among RPL, RNRL, IFCI, Power Grid and Selan Exploration for medium to long term? At which level they can be taken?
PRANAV SANGHAVI answers, I think RNRL, RPL, Power Grid and IFCI can be held.
sandeep asked, hello pranav
PRANAV SANGHAVI answers, Hello Sandeep and what is your query today?
sonu asked, sir what is happening in the market?where is going sensex?is the sensex become mad or investors?
PRANAV SANGHAVI answers, I think the foreign players have more conviction in our markets than we do. They have pumped in close to US$ 5 billion over thelast month. That has sentthe markets sky rocketting.
ajju asked, infosys? hold or sell
PRANAV SANGHAVI answers, I would wait for the results tom before taking a call.
uru asked, hi,what is ur opinion about the market so far.is there any kind of a correction in the near sceerio
PRANAV SANGHAVI answers, I have been waiting for a correction since 17,500. But its not been coming. The PE ratio's are historically high. But I think it should come.
kumar asked, can i sell tcs at present levels(1100) what is the long term value you would think it can reach?
PRANAV SANGHAVI answers, I think you should hold on for another week till their resutls are out and then take a call based on theri current performance and thier future guidance.
tabrez asked, hi Pranav. I m new in trading. Working in dubai. How Sould I invest in the current market situation. Please advice me in detail if possible
PRANAV SANGHAVI answers, Invest through SIP in Mutual Funds. Taken on an SIP scheme of a large cap diviersified MF like Tiger Fund of DSp, HDFC Growth Fund etc.
Vinod asked, Pranav Is there any limit for the price of a share can increase in a day?
PRANAV SANGHAVI answers, Yes there are circuit filters set for each scrip ranging from 5% to 20%. Unless its the listing day of the stock.
zeenastar asked, should i hold ESSAR STEEL AND NAGARJUNA FERT
PRANAV SANGHAVI answers, yes hold on to Essar Steel as they are planning a buy back and it should be at a premium to the market price. Nagarjuna there seems to be some story. So you could book profits at higher levels.
Prasanna asked, Kindly advise on Hotel Leela, HFCL (himachal Futuristic). Thanks again!
PRANAV SANGHAVI answers, i would hold on to Hotel Leela surely but switch from HFCL.
Pankaj Gupta asked, Sir, what's going wrong with Automobile sector ? when is this expected to do well ?
PRANAV SANGHAVI answers, I think once the interest rates fall marginally then we could see some boost. Although maruti has already jumped to its all time highs very quietly.
PRANAV SANGHAVI says, Well it has been great chatting with you all. Due to time constraints, I regret not having been able to answer all your queries. Bye for now and hope to see you'll next week.
Chat with Pranav every week!