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Stocks: Great short-term buys

May 15, 2008 09:20 IST

The Sensex almost touched 17,000 on Wednesday, but the market is without much direction.

Under the circumstances, what strategy should the investors 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 on Wednesday, market expert Pranav Sanghavi responded to many such queries. Here is the transcript:

Good afternoon everyone and welcome to the chat.

Dev asked, Hi Pranav, Whats your views on BHEL and SBI? At which level do you see them one year down the line?
PRANAV SANGHAVI answers,  at 2008-05-14 16:08:19I still am bullish on both these stocks but for the long term. I would see a return of about 20% in these stocks from current levels.
spawn asked, what do you think of Reliance petro for the next 2 quarters
PRANAV SANGHAVI answers, I don't think the stock price will go anywhere. I think some time next year the stock should start moving based on the date when the commercial production would be in full swing.
ishq asked, I have 375 shares of DISH TV @80/- and 750 of IFCI@ 78;pls.let me know whether i can hold or come out of with loss as i have not seen much movement from past 4 months.
PRANAV SANGHAVI answers, IFCI has seen some movement in the stock over the past few weeks. It has crossed the Rs. 60 mark once again. You could book a loss somewhere close to your price and look at quality stocks with long term potential.
RNR asked, What is the target for SESAGOA.
PRANAV SANGHAVI answers, Sesa has announced yet another bonus issue. I still think the stock has some steam left beyond its bonus issue and over a year and above you could see a 30% plus return.
gt asked, looking for investment in equity of some good company ,which one to go for a period of 1 year?
PRANAV SANGHAVI answers, There are lost of quality companies which are well below their previous highs. I would look at stocks like RIL, SBI, L&T etc. You could even look at the software companies with a short term outlook as the prices are spiking up due to a rise in the Dollar rates vs the Rupee.
iamme asked, Hi...I hold CHD developers, futura polyster, shristi infrastructure, Prakash Industries, Jaicorp and Bhagyanagar India. Kindly advise me on these stocks.
PRANAV SANGHAVI answers, I don't follow any of the stocks you mention sorry.
naglala asked, Should I hold on to unitech and DLF ?
PRANAV SANGHAVI answers, Yes. In the short term they may remain underperformers. But in the long term I am bullish on these stocks. DLF has corrected by over 50% already. You could bottom fish in this stock at current levels every time there is a dip.
PRANAV SANGHAVI answers, The stock has moved down over since the december highs. I would wait for lower levels before entering the stock as it looks to be on a downtrend.
romil asked, future prospects for allahbad bank holdig 3000 share at rs 90
PRANAV SANGHAVI answers, I would hold on to the stock with a 6 to 12 month time frame.
subhas asked, should I buy ACC at this price(670)?
PRANAV SANGHAVI answers, The infrastructure spend shall not come down. But the government will continue to hamper the prices of the commodity due to inflationary scares. But in the long term I like the stock.
gaurish asked, i have 2000 shares of RNRL at 97 should i hold them or sell
PRANAV SANGHAVI answers, Thats a question a lot of people are asking. A lot of them have got in at the November/December highs. I guess you would have to hold on for a longer time to see a decent profit on the stock. Till the outcome of the companies legal battle with RIL is resolved I don't think the stock would move anywhere.
usha asked, Should i hold GMR Infra and viceroy hotel. I bought at Rs.150.00 and at 80.00 respectively
PRANAV SANGHAVI answers, GMR is a long term bet. You would have to hold on for 1 to 2 years. THey have massive projects under way and you would have to wait till completion of the same. Viceroy Hotels I don't follow sorry.
honey asked, i have 100 shares of rel energy what should i do
PRANAV SANGHAVI answers, You will have to hold on for 2 to 3 years to see some sort of benefit. As currently it has no power plant commissioned as yet.
Srini asked, I am holding 75 shares of Jindal Steel and Power. at the average rate of 2750. what is the prospects of JSP ?. Also let me know, can i buy Indiabulls,Punj lloyd at this rates?
PRANAV SANGHAVI answers, I would certainly hold on to JSP. They are a fundamentally strong company with a strong balance sheet. You could look at Indiabulls realty and Punj Lloyd with a long term outlook.
riyas asked, Hi pranva, I holding Unitech, Ultracment, and Pantool stocks at current prices. Will it good returns if i hold it for 1 year period.
PRANAV SANGHAVI answers, You could surely hold on to Unitech and Ultratech. You should see a return of 20 to 30%.
pramod asked, what is the target of grasim?
PRANAV SANGHAVI answers, Grasim again is a fundamentally strong stock and I would look at a 25 to 30% return over a 9 to 12 month time frame.
skp asked, Pranav, what is you outlook on the market for the coming two months? Do we see a correction? I have 30 L&T at 3500 level, shall i hold it or buy on dips and average it.
PRANAV SANGHAVI answers, The markets are pretty volatile currently and should remain range bound in the short term. Beyond the rains and the 2nd quarter results we could see some upward movement in the markets.
hemadeash asked, How is Infosys, RIL and GMR for long term?
PRANAV SANGHAVI answers, I like all the three stocks with a long term outlook.
mrajesh asked, Hi Pranav, will Reliance power touch 450 before its dissection...????? whts the future of LNT
PRANAV SANGHAVI answers, I doubt that R Power would touch those levels. But L&T looks like a good bet with a merdium to long term outlook. The stock is a steady performer and the governments infrastructure spend will only benefit the company.
stocker asked, Please tell me about ICICIBank, DLF and RCOM.
PRANAV SANGHAVI answers, I like all the three stocks. I would surely hold on to them with a 6 to 12 month outlook.
jerome asked, Hello Pranav,is this the time to buy shares. I hold TCS, India Cements, Petronet and Gail India. Can i hold these for long term. Kindly advise.
PRANAV SANGHAVI answers, TCS has seen a sudden jump today as have most software companies with Dollar exposures. As the Dollar is appreciating against the Rupee. All the other three stocks have also been steady performers over the last few quarters. India Cement may not see huge jump in profits as the government will try to curtail prices due to inflationary scares and also the rainy season is about to commence.
srab asked, Hi Pranav, What do you think about buying stocks of TCS, ABB, SAIL, SBI, Maruti and Idea cellular at current price. I like to hold it for 6 months to 1 year period.Thanks
PRANAV SANGHAVI answers, I like all the stocks you have mentioned. I would surely pick the stocks and hold on for 6 to 12 months.
su asked, Is ONGC a good buy at 940?
PRANAV SANGHAVI answers, WIth the curde prices at record high I would not get into the stock as the crude prices could see some correction in the short term. If the curde prices continue the rise then the stock will surely see higher prices.
srab asked, Hi buddy, Is it wise to buy Asian Electronics, ACC and Siemens shares at current price for good returns in 6 months to 1 year. Please advice. Thanks
PRANAV SANGHAVI answers, Yes you could look at these stocks.
krishna asked, plese tell me abot ashok layland, DLF, syndicate bank, Ispat ind, nagarrjuna HFCL. is this have to hold the stock or sale
PRANAV SANGHAVI answers, You could hold on to all the stocks you have mentioned barring probably ispat.
vaikund asked, Is it good to buy following stocks at this time:L&T, Bharat bijlee, Container corporation, aegis logistics, airtel
PRANAV SANGHAVI answers, Yes you could look at acquiring these stocks at current levels on every dip.
farooq asked, what is the progress of DLF can it cross 800 in 3 months?
PRANAV SANGHAVI answers, If there is some upbeat news in the real estate markets over the next three months then it could surely move up to the level you have mentioned.
rgawade asked, now in the todays market is stock buying is good or have to wait. is there any correction in the market. I have 50 DLF @670, 1000 ashok lay @45, 500 @ 77 syndycate 1500 hfcl @22. Please reply
PRANAV SANGHAVI answers, There could be a small correction in the short term. You could buy in small parts on every dip the stocks you mention barring maybe HFCL as that is more of a speculative stock.
gurinder asked, Is it to good to buy SESA GOA? What is the expected price before split?
PRANAV SANGHAVI answers, If you are in it for the long term you could look at it. But currently the stock has run up due to the split announcement. In the long term of over 1 year I think the stock would further appreciate from current levels also.
Jagan asked, What a new investor should look for before investing in share during this period of time
PRANAV SANGHAVI answers, Capital safety is important. You don't want to invest and see a huge loss due to a short sharp correction like the ones in January and March. So, one should invest with extreme caution and also in frontline quality stocks.
Santosh asked, Hi Pranav, I am planning to invest in HDFC bank, Infosys Exide batteries,and English Indian clays. Please suggest me whether i should go ahead or look for some other shares.
PRANAV SANGHAVI answers, I like all the stocks you mention. You could also look at some othe large cap diversified stocks.
Rajesh asked, What abut HINDALCO, NTPC, BHEL?
PRANAV SANGHAVI answers, Surely hold on. I am bullish on all three of them with a 6 to 12 month outlook.
rajiv asked, hi pranav iwould like to know whether it is good to Pur thermax ltd Share
PRANAV SANGHAVI answers, You could look at it with a long term outlook.
arudran asked, I am holding Sundaram Finance @620, rcom @590, bajajholdings @690,denabank@63,ispatindustries @36,lloyd stee @14.50. Which should I quit, which should I book profit in short run??
PRANAV SANGHAVI answers, You could move out of Ispat an Lloyds steel. The others you could hold on to.
arora asked, hi! what is your opinion on Cairn India and Hindustan Oil Exploration Co?
PRANAV SANGHAVI answers, I like HOEC as a long term investment. They are strong fundamentally and surely in the right sector with the rising crude prices. Cairn India is a long term bet and also in the right sector as we are a grossly underpowered country.
Rajesh asked, Will there be any impact of HP-EDS merger on Software scetor?
PRANAV SANGHAVI answers, If HP decides to make an open offer of Mphasis in India then you could see soem activity in the Mphasis stock, if not I don't think there will be much impact with the stock markets outlook. Though the dollar has been rising against the Rupee and if that continues then we could see some further upward movement in the software stocks.
SUBBU asked, RNRL - i plan to buy 500 shares at current price of Rs. 109/- ? is it a good buy ?
PRANAV SANGHAVI answers, I would wait for the outcome of the battle between RIL and the company before investing.
maheshrmodi1 asked, Hi , whatdo you thinkabove stockslike tech mahindra & TCS. Will they achieve their earlier heights quickly or will take more then a year?
PRANAV SANGHAVI answers, The tech stocks are moving up everyday but they will still take some time before you see their earlier highs.
manju asked, Can i Buy Mphasis at the cmp, i heard that HP is buying this company??
PRANAV SANGHAVI answers, HP is buying out EDS internationally and EDS holds a large stake in Mphasis in India. Therefore it will acquire Mphasis too. But it may not make the open offer normally mandatory for every acquirer who acquires a stake of over 15% in a listed company as per SEBI guidelines.
divya asked, what is your opinion about BPCL
PRANAV SANGHAVI answers, I think with rising crude prices and left government and opposition blocking large increases in fuel prices locally, the Oilco's will face a massive writedown on profits over the next couple of quarters.
mangesh asked, what about abban????
PRANAV SANGHAVI answers, Its the largest oil exploration company in India. I would surely hold on ot the stock with a long term outlook.
vineet asked, I am having DSP ML Tiger,HDFC Equity,reliance growth and AIG Global SIP worth 0.48 lac in year. Should Increase the amounts, or add more funds to portfolio
PRANAV SANGHAVI answers, Making investments via MF's is always advisable as qualified people will be investing your money. If you do have the time to study the markets and make learned decisions then you could directly invest too.
arindam asked, Good afternoon, What's your view on Hindustan Zinc and ACC
PRANAV SANGHAVI answers, Hind Zinc is a commodity stock but I would surely hold on to the stock with a long term outlook. Same goes with ACC.
Parth asked, Hi Pranav ...I am holding stocks of HUL....i would like to know,whether to hold this stock or to sell it in this current volatile market...
PRANAV SANGHAVI answers, I think HUL was one of the stocks that was up over 25% in the volatime times of February an March. I like the stock but would get in at lower levels. It is surely not a sell.
PRANAV SANGHAVI says, Well it is time for me to leave. It has been great chatting with you guys. Hope to see you'll next week. Bye.

Chat with market expert Pranav every Wednesday!