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Markets volatile: Which stocks to buy now

December 19, 2007 15:43 IST
The Indian stock markets are soaring like there is no tomorrow. Starting at 13,000 in the beginning of this year, the Sensex crossed 20,000 intra-day on October 29 and then shot past the magic number on December 11. The markets did see a bit of a correction and are now hovering around the 19,000 levels.

Will the Sensex sustain the gains or will it go down again?

Where is the stock market going? Will it rise further? Or will they crash again? What should a small investor do in such a scenario? Should he hold on to his stocks or sell them? Should he buy stocks now or stay away from the market?

In an hour-long chat on on Wednesday, market expert Pranav Sanghavi responded to many such readers' queries. Here is the transcript:

Hello everyone and welcome to the chat. Let's begin.

mitesh asked, i have invest in RELIANCE NATURAL AT WHAT PRICE I EXIT PURCHASE 100 SHARES @ 162
PRANAV SANGHAVI answers,  at 2007-12-19 11:59:19It will depend on your profit target. I guess if you wait for another 3 to 6 months you should see a profit.
Anila asked, Would it be right to Bharti Airtel at the current prices?
PRANAV SANGHAVI answers, You could look at it with a long term outlook. Right now the prices have corrected due to the proposed policy changes by the government where it looks that RComm will be the major beneficiary.
bhatt asked, Good Afternoon From past few weeks Pharama sector is moving any news on it. Iam holding glenmark@45 1400shares and Nicholas @259 500share pls advice to hold or sell
PRANAV SANGHAVI answers, The Pharma sector has underperformed the market and their performances have not been that bad for them to lag behind. I guess they are catching up with other index stocks. Both can be held on for a long time. Both are good quality stocks.
sahil asked, Hi Pranav, your views on GTL Infra & SpiceJet. It is a good term to enter these scripts?
PRANAV SANGHAVI answers, GTL infra has two things going for it, the Infra in its name and some operator type activity which has pushed up its price. I would though not enter either of the stocks right now.
PRANAV SANGHAVI answers, It depends on what is your profit target.
kabeer asked, if i want o invest Rs.1 lac for i year , which stocks will fetch good returns
PRANAV SANGHAVI answers, I would stick with the frontline stocks like RIL, SBI, L&T, DLF etc.
sumanth asked, Hi I entered into the market on 12/dec and invested my entire savings in mutual funds. The investment stands down by 6 percent. What do i do now
PRANAV SANGHAVI answers, With a longer term the funds should perform well provided you have invested with the divcersified lasrge cap funds. If you have invested in sector specific funds then it will depend on the performance of that sector. And I would surely change your investment advisor who has asked youi to invest your entire savings in MF's.
narain asked, Dear Mr.Pranesh, Pls advice on TELECOM Stocks. Is it good to be in this sector for 5 yrs. i have idea 500 @ 100 & RCOM 100 & 500 pls advice
PRANAV SANGHAVI answers, Our telecom industry is definately a lucrative market what with the world's largest player Vodafone having taken such a big bet on it. You could surley look at the sector with a long term outlook for good returns.
kk asked, Whats your take on NTPC, Yes Bank and 3i Infotech? Is it the right time to buy these shares
PRANAV SANGHAVI answers, I have been recommending NTPC right from last year when it wasRs. 75 levels. I still think it is a good bet. You could definately look at Yes Bank. 3i Info you oculd wait for a bit.
PRANAV SANGHAVI answers, Well Lloyd steel was a defunct company and was on the verge of bankruptcy at one time. They also were in BIFR and in deep financial crisis. So it does scare people to enter such stocks especially when TISCO is available at lucrative valuations.
rishi asked, what abt power grid and rnrl for a three months take. I have 500 of eac at 130 and 150
PRANAV SANGHAVI answers, You cna surely hold on to Power Grid with a long term view. RNRl will depend onthe outcome of the case regarding the Gas reserves. Till then it should remain range bound.
Tushar Tanzania asked, Hi.IDFC,NTPC,IDBI, are these stocks ok to enter at these levels
PRANAV SANGHAVI answers, With a long term outlook you can enter all the three. They are quality midcap stocks with long term potential.
rajm asked, Hi Pranav, Good Morning, Can you please suggest to me whether Facor steel is a good script for long term hold, have purchased it at 12.53, also would you recommend buying Airtel and lloyd steel at current price
PRANAV SANGHAVI answers, If you are making profit, I would exit. Swithc to a SAIL or TIsco. You could look at Airtel with a longer term outlook but I would stay away from Lloyd Steel even though it is a momentum stock and in the short temr you may see some rise.
Sanjeev asked, Hello Sir, How are you? I have just opend DMAT in icici bank. 1)I want to start investing in blue chip share for long terms more then 5 yes- which one is better pls advice. 2) I also want to start SIP in any mutual fund Rs 1000/- per month--pls advice which one is better. 3) Please advice any kid plan for education and marriage. Thanks in advance sir. PLEASE DO REPLY.
PRANAV SANGHAVI answers, Please send me an Email with the detailed query as it would take me a long time to answer this question on this chat.
Manish asked, Dear Pranav ji. If I would like to Invest rs.15000/- what are the best scripts. What would be market in next 2-3 months
PRANAV SANGHAVI answers, I would surely look at RIL, SBI, L&T, BHEL etc.
Altafhusain asked, Salam Pranav, can i buy rajesh Export at current level, thnx
PRANAV SANGHAVI answers, I would stay away from that stock.
Shiv asked, I have taken 30 shares o icici bank @ 1140 . i am short term investor. what do you think is the target ?
PRANAV SANGHAVI answers, I think ICICI is a good stock with short and long term outlook.
raju75 asked, hi what about tourism finance corporation of india(TFCIL)
PRANAV SANGHAVI answers, That stock is on a tear today. I would hold on.
mats asked, Hi Pranav..GM.. what abt power grid?
PRANAV SANGHAVI answers, HOld on.
sharadr asked, If the latest Merrill Lynch report is to be believed, Reliance Petroleum will be merged with Reliance Industries Ltd (RIL). Can u comment on this?
PRANAV SANGHAVI answers, I don't think DSPML has released a report saying that the two companies will merge. There is a possibility. If that does happen it will create a giant which will result in economies of scale etc.
Rajan asked, I have Rolta, Sterlite Industries, Gujarat NRE coke, Mothersun sumi, UTV Software, Reliance Industrial Infra. Can you see any wrong picks in these ones?
PRANAV SANGHAVI answers, ALl are decent midcap picks.
Don asked, What do u think about GTL Infra? Good to enter at 85-87?
PRANAV SANGHAVI answers, I was just yesterday given a target of 120 on the stock but it looks like an operator driven scrip so I would steer clear.
ramdongre asked, Hi Pranav,Should I buy Compton at current Price ,what about PetronetLNG ?
PRANAV SANGHAVI answers, Yes you could surely look at Crompton. Petronet I would wait for a massive correction of about 15 to 20% on the stock to get in.
rahul asked, im having bellary steel share should i hold or sell & what about ispatindustrie share
PRANAV SANGHAVI answers, I would book profits on the stock.
umesh asked, i am holding idbi, shall i told or there r chance for upside
PRANAV SANGHAVI answers, I would surely hold on.
ravi asked, i had invested in tata steel(200) and parvanath(200) at @905 and @417 when i should release these stocs
PRANAV SANGHAVI answers, Tisco you can continue to hold. The true value will unlock in a couple of years when they have managed to reduce the debt on its balance sheet to acquire Corus and the Corus earnings and turnover gets added on to its balance sheet. I would look at Unitech or DLF instead of a Parasvanath.
ayyangouda asked, i took powergrid 1400 shares@141 what the prospect
PRANAV SANGHAVI answers, If you have bought with a long term outlook then you could surely hold on.
harrybull asked, Hi Pranav, whats your take on GMR Infra over one year horizon?
PRANAV SANGHAVI answers, Hi Harry, I think GMR has decent potential to give substantial returns over the next couple of years. They have bagged some prestigious contracts and also bidding for some overseas contracts.
kuldeep asked, what is the future of Jaiprakash associate, should i buy now or wait
PRANAV SANGHAVI answers, I would wiat for a correction.
test asked, Pranav What you think about IFCI with long term prospective as the 26% sale is in final stage?
PRANAV SANGHAVI answers, If the winner gets management control too then I owuld hold on. If they don't get management control, I would get out.
jose asked, should I hold on to Reliance enrgy bought at 1200??
PRANAV SANGHAVI answers, Yes you could surely hold on. January should see new highs for this scrip.
Sri asked, Is it good time to buy Idea, TTML, MRPL and Ashok Leyland?
PRANAV SANGHAVI answers, They all have moved up substantially so I would wiat for a correction in the midcap segment like th eone we witnessed on Monday.
pkc asked, nucleus software seems to be the dark horse your view
don't follow that stock so I can't help you sorry.
ITStocks asked, Will TCS post great Q3 results in Jan
PRANAV SANGHAVI answers, In dollar terms they surely will. It will have to be seen how well they have mitigated the loss due to the appreciating Ruppee.
pradeep asked, i have balaji 50 @ 313, mastek 100@380, mundra port 15@440, edelwiss 8 @ 825, hdil 15 @ 960. gmr infra @ 242, rpl 100 @ 219. Please advice me whethe i should hold or sell ?
PRANAV SANGHAVI answers, Surely, hold on to Edelweiss, HDIL, RPL, GMR from the lot you've mentioned.
codes asked, At what price should I buy Reliance and BHEL?
PRANAV SANGHAVI answers, As I had mentioned in my last chat, you should buy them on days of corrections like the one witnessed on Monday.
ganesh asked, I have 200 shares of United spirits ? Can I expect the price to go up Rs. 2500 ? In what time frame Please advice should I hold or sell
PRANAV SANGHAVI answers, I would hold on and you could see those levels some time next year.
meena asked, should I sell Deepak Fertilizers at this rate and what about Arvind mills should I hold or will the price go up further
PRANAV SANGHAVI answers, I would hold on as there are some sops expected for the fertilizer industry in the budget.
piyal asked, Can you please tell me what to do with SBI Home finance Shares. Where all other Home finance Shares are doing so well what is the malady with this one?
PRANAV SANGHAVI answers, I guess there is some worry about exposure to subprime ledngin within India. But you could surely look at the stock as it looks undervalued.
nimisha asked, Hi Pranav tell me abt Precision Pipes & Profiles Company Ltd. i want to apply for this IPO. Thx
PRANAV SANGHAVI answers, It is a niche yes small to mid sized player in the metal industry you could look at it.
ganesh asked, Please tell me whether UCO bank and ITC are good to enter now ?
PRANAV SANGHAVI answers, Even though ITC has run up recently I would still buy on dips. You could surely look at UCO bank also.
raju asked, Dear pranav, Can you tell me whther godrej industries is a multibagger. I learnt from the news paper article, they are one of the reputed builder and huge land bank. After the IPo they may be like DLF and unitech. What is your openion
PRANAV SANGHAVI answers, Godrej Ind has already jumped ten folds over the last two years. They have plans for land development and also possess a decent land bank. You could hold on to them.
pranav asked, what abt RPL??
PRANAV SANGHAVI answers, Wait for the commercial production to begin. asked, hi pranav whats ur call on DLF
PRANAV SANGHAVI answers, I am still bullish on the stock. A couple of months back when the stock was hovering around 580 levels, I had recommended a buy witha target of around Rs. 850 by March'08. But they have crossed Rs. 1000 already. I am still bullish on them to deliver great profits and win large projects.
deepak asked, what is the expected returns on bhel in a year's time
PRANAV SANGHAVI answers, I would peg it at around 30 to 40% returns.
rahulsanghvi asked, sir can i buy sugar?
PRANAV SANGHAVI answers, I hope you mean sugar sector stocks. Well even the ehtanol story will not help too much. I would still stay away from the sector.
PRANAV SANGHAVI answers, Rpl you could surely hold on.
deepak asked, MF for an SIP with 2 year horizon. Please suggest
PRANAV SANGHAVI answers, I can't give you a specific fund but look for growth oriented largecap diversified funds.
sk asked, Hi Pranav, What is ur take on Allied Computers/Alok Industries/Ashok Leyland/Dish TV from short term view?
PRANAV SANGHAVI answers, Book profits and exit.
lk asked, What are the long term prospects of Jindal Steel and Power ?
PRANAV SANGHAVI answers, Excellent. You should hold on.
ssss asked, Hello & Good Day! What are the prospects of Glenmark. Is it still a good buy at current levels of 600, on along term basis (2-3 years). Thanks
PRANAV SANGHAVI answers, Yes Glenmark is a good mid sized pharma player. I would surely hold on.
HCN asked, What is the outlook for IT . Does it make sense to stay inveted in TCS, Wipro & Satyam
PRANAV SANGHAVI answers, The dollar may rally for a short term but eventually with high FII inflows it may depreciate again next year. So these companies will have to give substantial jump in profits to counter the dollar depreciation.
lk asked, Is Siemens a good take for long term ?
PRANAV SANGHAVI answers, Yes all the engineering stocks are benefitting with a boom in infrastructure in the country and Siemens is no exception.
pawan asked, hi sir i have 3000 share of sah petrolium @ 25 what i do?
PRANAV SANGHAVI answers, You will have to hold on to see proifits.
sk asked, Hi Would you recommend any one grom these from short term perspective PTC/Praj Ind/Tata Tele Serv
PRANAV SANGHAVI answers, I would pick Praj from the three.
Kris asked, Hi Pranav what is the short term ( 1 month) outlook of he market ? Will it go down to 18000 or will it go up ?
PRANAV SANGHAVI answers, Down to 18000 looks difficult. But a small correction as I had mentioned last week did come in and we nearly tested 19,000 levels. So it may remain a bit rangebound before rallyin in first half of Jan'08.
Tanaji asked, Hello Sir, good morning. Sir, can I enter Punj Lloyd and L&T now with a 2-3 years time. Also what is likely target of RPL in next 2 years. thank you.
PRANAV SANGHAVI answers, Yes you could look at all the three stocks with that time frame. RPL could show a return of 30 to 50%.
anandanand asked, centurion bank shall i buy at this level will they declare divedend but when
PRANAV SANGHAVI answers, It rising sharply on a daily baisis. I would look at corrections an dips in the stock to buy.
paul asked, why is hindustan oil exploration going for rights issue. They just had one a year back. Any updates.
PRANAV SANGHAVI answers, They need further capital for their expansion plans for excavating larger oilfields.
sk asked, Hi Pranav, There is rumor of merger of RPL and RNRL what would be effect of this merger on share holders of these companies?
PRANAV SANGHAVI answers, I w3ould say its just that, a rumour. The management has strongly denied any merger plans of RPL with RNRL as they are in different factions.
apur asked, Hi Pranav What is your opinion on Vijaya Bank, Eclerx. Can i hold it for some time? Please let me know.
PRANAV SANGHAVI answers, You could surely look at Vijaya bank with a 6 to 12 month outlook.
anandanand asked, when is the stock split for BHEL sir and when ONGC is likely to declare bonus
PRANAV SANGHAVI answers, I would wiat for official announcements for both.
tp asked, shud i stay invested in balrampur chini @ 105, wipro @ 465 and infy @ 1775???
PRANAV SANGHAVI answers, I would exit for the short temr and switch to growth stocks and then revert back witha stable dollar or some corporate news from the stocks.
Monu asked, I have invest in RIL,SBI,NTPC,JPHYDRO,CBOP TTML,TCS.What is the future.Should i invest more in this or any other stock(suggest).
PRANAV SANGHAVI answers, I would look at DLF, L&T, FT, instead of TTMl, TCs right now.
shreya asked, Hi pranav, I have IDFC,NTPC,RPL,IDBI and Punj Lyod.Can u suggest me wheather i should go for more midcap or should i go for Large Cap like LnT,RIL,SBI
PRANAV SANGHAVI answers, In the short term the large caps look fairly valued thats why the mid caps have started to rally as the attention seems to have shifted to them. But beyond a correction and the results seasons even the frontline stocks should rally.
Jitesh asked, Pranav What is your view on mid and small cap steel & alloys stocks?
PRANAV SANGHAVI answers, You have to be very carefull in picking your stocks as a lot of dead stocks have risen in this mid cap and small cap rally.
ra asked, Hello Pranav ji,how are you?I have 1600 RPL AT AVERAGE Rs 220/=What do prospects look like in next 3 years?I retire by then.Is it too risky as a retirement plan?
PRANAV SANGHAVI answers, You could surely expect a handsome return once the commercial production starts which should be in about 2 years time.
PRANAV SANGHAVI answers, All the bank shares will give decent returns all through next year. Both mid cap and large cap and PSU and private banks.
Pallan asked, Good afternoon Pranav, I am holding MRPL bought @ 41, RNRL @41, Tata Tele @ 21, Gujarant NRE Coke @ 35 & Unitech @ 240. What is your take on these scrips? I am ready to hold on for another 1 year.
PRANAV SANGHAVI answers, You could hold on to MRPL, RNRL Guj NRE and Unitech.
PRANAV SANGHAVI says, Well it has been great chatting with you people. Happy Holidays and see you'll soon. Bye for now.

Chat with Pranav every week!