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Market correcting? Buy quality stocks

February 07, 2008 09:57 IST
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After opening the week on a buoyant note, when it closed above 500 points, the Sensex once more ended down over 500 points on global cues.

But is the worst over? Or is the Sensex likely to sink further? What strategy should you follow? Is this the right time to buy stocks? If so, which stocks and sectors should you concentrate on?

In an hour-long chat on rediff.comstock market expert Pranav Sanghavi replied to many such readers' queries. Here is the transcript:

PRANAV SANGHAVI says, Good afternoon and welcome to the chat. Let's begin.

mayank asked, Hi Pranav, i have invested in binani industries, centbop. shud i hold these stocks or sell it off??
PRANAV SANGHAVI answers,  at 2008-02-06 15:57:26CentBOP you can surely hold on to.
mayank asked, what is ur opinion about Mukta Arts??
PRANAV SANGHAVI answers, I think there are better media stocks in the market.
arvish asked, Hi Pranav, kindly suggest me some good shares to buy should i go with JP Associate, Pyramid Symaria, NTPC,Reliance Petroleum Kindly suggest which will give me hike. Thanks Arvish
PRANAV SANGHAVI answers, You can surely look at NTPC, RPL, IDFC, Dena Bank, SBI, L&T, DLF, RIL etc.
somanijk asked, i have purchased 50 distv @99.5 what to do ?
PRANAV SANGHAVI answers, Right now you could hold on for a while.
ramesh asked, hello
PRANAV SANGHAVI answers, Hello.
daspeedee asked, what sall i do with my ifci shares bought at 55/- ?
PRANAV SANGHAVI answers, It has been going up everyday and you are in profit. I would advise you to start booking profit at higher levels and get into quality stocks.
Payal asked, wht do u suggest for scripts like PunjLyods,Rcomm,Praj,IDBI,NTPC for 3yrs term
PRANAV SANGHAVI answers, I would surely go for all the stocks you have mentioned. All are quality stocks especially with that time frame.
Srinivasan asked, Hi pranav, I have invested in IFCI and JINDAL STEEL & POWER .. CAn you please let me know can i hold on long term prospective ?
PRANAV SANGHAVI answers, IFCI is a bet you will have to take that they find a strong partner again and that they get some sort of management control. If not the stock may not cross it's previous highs. JSP you can surely hold on.
Sree asked, Hi Pranav.., i would like to invest 1.5 Lakhs in Equity's.., kindly refer me 5 good stocks
PRANAV SANGHAVI answers, I just mentioned a few stocks in my earlier replies, please refer. Thank you.
Paresh asked, i have Bellary Steels share, took at Rs 13/- should i keep it or sell it off
PRANAV SANGHAVI answers, I would book a loss and switch to a SAIL or Tisco from its peers.
Payal asked, i am having GAIL,Cadila Healthcare.wht do u suggest for this script.i bough Cadila @ 355 and then the price never cross 310 from last 6months
PRANAV SANGHAVI answers, Unfortunately the pharma stocks have not been performing over the last few months. Cadila a quality manufacturer of pharma industry equipments also is suffering. I would hold on.
kiritshah asked, Hi Pranav, I got stuck in Geogit financial at 122, HMT at 129 and Himachal Futuristic at 45 some 3 weeks back. I can wait if the stocks r good enough else ready to sell and re-invest in stocks like NTPC, ICICI and BHEL. Pl advice.
PRANAV SANGHAVI answers, HFCL I cannot say but the other two you could hold on to see profits again. Again NTPC, ICICI and BHEL area quality frontline stocks I would surely buy at current levels but in small parts on every fall.
Mohit asked, What is the SCOPE of RPL and RNL?
PRANAV SANGHAVI answers, Once the refinery goes into commercial production RPL has the chances to break its previous highs and make new highs. RNRL will depend on the outcome of the gas reserves battle with RIL.
sajid asked, sir, good afternoon, I have 1000 scrips of Nagfrt of Rs. 48 and 500 scrip of MRPL for Rs. 91.00. Please suggest me about how holdings.
PRANAV SANGHAVI answers, You have picked two of the highly liquid stocks from the futures pack. You could hold on and book prifits regularly at higher levels.
Srinivasan asked, What is the Scope for TTML,GMR and ADLABS ?
PRANAV SANGHAVI answers, TTML is still a loss maker so not much in the near future till it turns around and delivers profits. GMR on th eother hand is a quality infra play and who is delivering decent results also. I would surely hold on or buy in small parts at current levels. Adlabs is a pioneer in film processing and multiplex business in the country. I would hold on.
Ashish asked, Hi Pranav, request you to tell which I can buy more/sell/hold out the following scripts right now, I am currently holding them along with few others; PRAIN, FINTEC, IFLEX, INFTEC, MICELE, SONSOF, RANLAB, POWGRI, INDOIL, OPTCIR, IKFSOF, TRACOR.
PRANAV SANGHAVI answers, You could book profits on Ranbaxy, Indian oil and IFlex. You could hold on to PRaj, MIRC, Power Grid, IKF TRACor etc.
bingo asked, HI.. I put in a total of 3 lakhs in 4 MF's (SBI magnum Comma fund, DSPL Tiger, Tata Infrsatructure and Birla sun life special situations fund). Lo and behold, the markets crashed the very next week ! What next, how long do you think I will have to stay before i make some kind of profit ?
PRANAV SANGHAVI answers, I don't think people invest in MF's to look at them on a monthly basis. you should look at their quarterly performance if not bi-annually. But on a longer term if the fund is a good you will see decent returns.
Devan asked, Hello... I have 10,000 shares of Satyam Computers What should I do?
PRANAV SANGHAVI answers, They are the one who has corrected the least from the top 5 software firms. They have also delivered better results than most. You could exit a part of your holding at higher levels for the short term and look at frontline growth stocks.
AMA asked, I have the following Mutual funds: 1) SBI Blue Chip (5k-one time); 2) Temepleton FlexiCap (18k-SIP); 3) Reliance Growth (6k-SIP); 4) Prudential E&D (5k-one time); 5) Reliance Banking (10k-one time); 6) DSP TIGER (15k-one time). I wish to invest atleast Rs.3k every month in MF. Could you pls advice whether I should continue investing in the above mentioned funds on a SIP basis or should I go for some other funds. I am looking at long term (8-10 yrs) returns.
PRANAV SANGHAVI answers, I think you have made decent choices. But I would need to see all the portfolio's of the all the funds you mention before I coomment.
mayankgr asked, hi pranav I have shares of rolta , rpl,rnrl,ifci,powergrid,omaxe. what is future of these stocks? How long should i hold them ?
PRANAV SANGHAVI answers, If you hold on with a time fraome of 3 to 6 months you should see profits.
vyas asked, what is the future of dlf WHAT EQUITY TO BUY
PRANAV SANGHAVI answers, I think DLF is a strong player in the real estate sector and could be bought at lower lever (below Rs. 850) with a long term outlook.
manisha123 asked, sir i want to earn in interday basis what to do as d day ends i feel dat i could i ve earned like dis n dat rpl rnrl vd gr8 momentum
PRANAV SANGHAVI answers, You would need to train yourself well before you delve in intra trading as only professional traders who are aware of stop losses and booking profits should trade on a intra day basis. Also you should have a thorough knowledge of the markets and its dynamics.
tingting asked, The market is playing HIDE & SEEK GAME. What would be its future that before BUDGET & IMMEDIATELY AFTER BUDGET.
PRANAV SANGHAVI answers, I think the markets will remain volatile for a while. As global factors are also affecting our markets. The budget could prove to be a turning point but we will have to wait and see as no one can predict what is going to happen. Although the budget looks to be a populous one, consindering that this could be the last one for the current government in this term.
ravidvarma asked, i have 300 shares of northgate Technologies u suggest me Sell or hold for more days?
PRANAV SANGHAVI answers, I am sorry, I don't follow that stock so will not be able to help you.
MALPEKAR asked, Is to better to hold stocks like Welspun Gujrat, Zee News, IndusInd Bank at cuurent levels or exit ?
PRANAV SANGHAVI answers, If you are in losses you could hold on for a while. You could see some profit over the next 3 to 6 months.
babu asked, Hi Pranav! Greetings! I have a lumpsum of 15 lakhs to invest in markets. I can stay invested for 2-3years. Could you please suggest me few good Hybrid (equity or debt oriented) funds? Is it the right time to invest? What is your take on Gold ETF funds? Thanks.
PRANAV SANGHAVI answers, I won't be able to name any particular funds but you could look at large cap diversified funds. Gold ETF's is a more cleaner and tax effectinve way to investo in gold.
PRANAV SANGHAVI answers, Again I won't name any particular one but I know a lot of them are on offer by SBI Caps, ICICI etc.
imtiyaz asked, Hi Pranav, I have 9 L&T at 4350, Bhel @ 2452, ONGC at 1320, RCOM at 695, canara bank at 396, 350 Balchini @125, what should I do?
PRANAV SANGHAVI answers, Hold on. Balrampur you oculd exit on rallies. The others you can surely hold on.
SRIDHAR.S asked, Hi pranav I bought ARVIND MILLS at 65.6 how long should i hold them to book some profit Thank you
PRANAV SANGHAVI answers, You will have to hold for 3 to 6 months atleast.
nrupareliya asked, Hi Pranav, I have 180 shares of Rajesh Export @ 148 ( after split & bonus ), what is the target price for 6
month ?
PRANAV SANGHAVI answers, Rajesh Exp has been a steady performer and you could hold on. You are already making decent profit.
stc asked, what are the future prospects of Tech mahindra? I bought at 900
PRANAV SANGHAVI answers, You have a decent price on the stock. Despite its good results the stock is under rated due to the weaker dollar. Now with talks of a mild US recession they are falling further. Tech Mah has a greater exposure to the European market so it may still be a bit insulated from the Dollar and US effect.
sudhir asked, Hi Pranav, I had purchased 30 shares each of GMR Infra @ 176 and SCI @ 312 and has also invested in the following MFs : SBI Magnum Tax Gain (D) @ RS. 1000 pm, PNB Personal Tax Saver @ Rs. 1000 pm(both ELSS) and Sundaram BNP Paribas @ Rs. 2000 pm. Please advice should i continue with the MF and the future of the shars that i am holding?
PRANAV SANGHAVI answers, Yes you can surely hold on. You have made good choices.
pratap asked, what is the future of jindal steel and how much is expected to go in the future?
PRANAV SANGHAVI answers, I think you can surely hold on to the stock. It should deliver decent results over the next few quarters.
hzgupta asked, Is it good time to buy ICICI Bank shares.. am a smal investor will limit my investment to 25K
PRANAV SANGHAVI answers, Yes surely.
deepak asked, deepak hello pranav i have unitech 220 shares of old pattern thats 266rs each also i have LNT AT 42245 28 NOS ongc 1200 rs 100 shares what to do wait is it
PRANAV SANGHAVI answers, You can surely wait with the stocks that you are holding. You don't need to panic and sell.
x asked, Hi Pranav, IS it good to invest in shares or mutual funds at this there is a crash int he market..I am new to the stock market.Also is it good to go for day-tradings or long term investments
PRANAV SANGHAVI answers, I have mentioned quite a few scrips in my earlier replies please refer. It is never advisable especially for a newbie to get into day trading. Long term investments will surely yeild you the best results.
Godwin asked, What is expected from Blue Star and KEI in 18 to 24 mths term.
PRANAV SANGHAVI answers, Blue star is a good hold. The rise in infrastructure development should benefit the company.
RAKESHJHUNJHUN asked, I have GMR@245, NTPC@240, POWERGRID@145 what should be done? May I book loss ??
PRANAV SANGHAVI answers, Not at all. You will surely see profits if you continue to hold. Infact at lower levels you could buy in small parts on dips to lower your acquisition price.
PRANAV SANGHAVI answers, If you can hold on you will see your price. If you wish to average do so with a 6 to 12 month time frame in mind. asked, hi pranav ji i am mediun to long term investor, what will be the market from now on and its range or it will be sector specific trade.
PRANAV SANGHAVI answers, I think our corporate result looks to remain intact and as our PM said our economy looks to continue growing at over 8%. If both these factors do remain then there is a goo dchance the bull rally is not over. These corrections should be used to acquire quality frontline stocks who are delivering growth at over 20%.
ajith asked, What is the prospect for IFCI? and also IDFC?
PRANAV SANGHAVI answers, IDFC is a fundamentally strong scrip and can surely be held on or bought at lower levels with a 6 to 12 month outlook. IFCI as I explained in a previous reply will depend on whether there will be another round of bidding, who will be the bidders and will they get management control.
videep asked, Hi Pranav, I'm still holding 500 shares of ISPAT, bought it when its price was around 80...would its price reach Rs.80 or not...what do you i hold the shares or sell them off?
PRANAV SANGHAVI answers, It is a momentum stock. Despite its background it was running up substantially. You have got in at pretty high levels. You will ahve to wiat for some time before the stock makes a profit for you.
Sri asked, Hi I hold Power Grid at rs138,VOLTAS at rs 207,NTPC at rs 208,RPL at rs 169.60, RNRL at rs 132.00 and Punj Lloyd at rs 320.please suggest me whether to sell or hold on the same?
PRANAV SANGHAVI answers, Definately hold. All are good quality stocks.
fabreens asked, I hear that Rel Power listing on 11th is crucial. Anil would keep the mkts propped up till then. Does it ring true?
PRANAV SANGHAVI answers, See till today, on a longer term basis, the Reliance group of scrips have never let an investor down and always made them happy. Rel Power looks to be no different.
jit asked, what about emmar mgf??
PRANAV SANGHAVI answers, The company has come out with an issue just when the markets tanked. It has even lowered its price band which will not go down with savvy investors. There are other equally good real estate plays available at comparable PE's or even lower. So why would one apply. But on a longer term they may deliver on their future projects and the stock may see higher prices.
Godwin asked, During the last Fed cut there was huge surge in Sensex. But this time, huge Fed cut got very cold response from Sensex. Is it giving any definite signal about the direction of sensex in coming months?
PRANAV SANGHAVI answers, Not only from the Sensex but all the major markets around the world. The second rate reduction was on expected lines and had already been discounted. The next meeting again will be crucial especially after the figures that came out of US yesterday.
mukesh asked, i have 100 NTPC @ 283 what should i do with the current downside in market weakening the script?
PRANAV SANGHAVI answers, I would buy on every dip like today when markets fall in small parts. And surely hold on to the stock with even a 2 year outlook.
Nilotpal asked, Hi Pranav, How do you see the prospect of Hotel Leela and DishTV for 3 months timeframe?
PRANAV SANGHAVI answers, You could hold on to Hotel leela surely.
x asked, For a small investor and first time investor what are the best stock picks.
raju asked, Hi, What is the chance of market going back to high 0f Jan 2008
PRANAV SANGHAVI answers, During the course of the year I am pretty sure that markets will see new highs as when the markets are in a upswing all the corrections and the mayhem is easily forgotten.
vignesh asked, Hi.pranav., i am just new to the shares., and considering the fall inthe market recently waht you suggest can i still go ahead and start investing for my future or better stick to mutual funds as many advise me to do that in MF. Am confused ?
PRANAV SANGHAVI answers, Yes this would indeed be a good time to invest with a 3 to 5 year outlook or longer. If you do not have time to devote to investing then surely take the mutual fund route. But do consult a broker or a CMFA before you invest.
pr asked, Hi whats ur opinion on fundamental stocks like ril, rcom, sbi and sail for a 5 yr much would you predict the annual returns
PRANAV SANGHAVI answers, I would easily look at over 20% annualised returns from these scrips.
Tashan asked, Good Afternoon. Ney Lignite @ 111.4, Jindal Stl @ 1695, REL @ 1544, RPL @ 135. Hold or book profit. Thanks.
PRANAV SANGHAVI answers, Hold.
abc asked, I have GMR@217, DLF@1050, PRISMCEMENT@145 and IFCI@80 what should be done? May I book loss ??
PRANAV SANGHAVI answers, No I would suggest you hold and you could book profits on IFCI once you see it in positive territory.
Tejas asked, Sir, I want to buy gmr infra at cmp for long terms of 1-2 year. pl. advice.
PRANAV SANGHAVI answers, I think its a good call.
testing asked, Hi Pranav....why is sbi struggling at RS 2200 level, when banking stocks are meant to outperform this year. At what price do you see it around the budget time
PRANAV SANGHAVI answers, In fact if you look at the other frontline stocks SBI was down for a very short time and did not correct too much. You could see a price above its rights issue price soon.
xyz asked, I hold balmer lawrie @660. Plz advice hold or exit?
PRANAV SANGHAVI answers, Definately a hold. They not only are leaders in certain lubricants but also hold huge tracts of land all over India, especially the coastal regions. There is hugh untapped wealth in the stock.
Sajiv asked, Hi Pranav, Will your advise be to stay invested in MF and equities with the markets going on a slippery mode
PRANAV SANGHAVI answers, If you are a long term player surely.
dude asked, pranav would u suggest l&t,unitech, voltas and bhel for a long target is atleast 15% p.a returns
PRANAV SANGHAVI answers, Yes surely.
manish asked, will ntpc cross 250
sdhatrak asked, Which stock is good for long term L&T, Unitech or gmr infra?
PRANAV SANGHAVI answers, All the three are good. If I had to pick one it would surely be L&T.
PRANAV SANGHAVI says, Well it's been great as always chatting with you people. Bye for now.

Chat with Pranav every Wednesday at 4 pm

(Due to circumstances beyond our control, date and time of chat may change)
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