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Want to invest in stocks? Wait!

January 02, 2009 12:00 IST

The Sensex opened with a positive gap on Wednesday but failed to hold on to gains. The investors are having a tough time at Dalal Street.

In such jittery times, what strategy should you adopt? Which stocks to buy, sell and hold?

In an hour-long chat on on Wednesday, market expert Pranav Sanghavi offered some valuable tips. Here is the transcript:

PRANAV SANGHAVI says, Good afternoon and welcome to the chat.

cherian asked, happy new year
PRANAV SANGHAVI answers,  at 2008-12-31 15:19:30Hi Cherian, thank you and wishing you the same.
kl asked, hows idfc, bartromics,
PRANAV SANGHAVI answers, IDFC has moved from high 40 levels to the mid 6 levels. If this rally continues then you could see a higher price. But I would not jump in to buy.
Ratnakar asked, How is unitech , Suzlon for 6 months?
PRANAV SANGHAVI answers, Both have at their lows corrected nearly 90%. I would only look at them as long term plays. You would have to hold for over a year to see decent returns.
PRANAV SANGHAVI answers, I would wait for a correction before I buy. The bear market rally has already risen over 20% from it's lows. I would wait for it to fall before I start to buy again.
prasad asked, what is the prospective of satyam computers,Tata Motors,HDIL,Tata Steel,Thermax,Corporation Bank with 2 years origin
PRANAV SANGHAVI answers, All should give you decent returns with a 2 year perspective. But when you get in is the key.
priti asked, Hello, Your take on mrpl, tatacehm & nalco. Shld buy or not. Also shld i opt for bhel or L&t. pl advise
PRANAV SANGHAVI answers, I wouldn't bet too heavily on a refinery stock currently as the Crude prices are fluctuating and the margns may shrink if the crude prices go up. Tata Chem could be looked at but with a 6 to 12 month outlook. If you are not holding L&T or BHEL in your portfolio then I would surely opt for them first before I look at other stocks.
veguru_d asked, Hi I have Garware-Wall Rop (200)@52,Brigade Enterprises(100)@52. Should i hold or sell them
PRANAV SANGHAVI answers, I don't follow either so will not be able to help you. But they sound lile B2 stocks and I would not touch them in this current maket scenario.
ajoysen asked, I hold 2000RNRL@120 & 900RPL@195. Pls advise.
PRANAV SANGHAVI answers, You will have to hold RPL for a while befoe you make a decent proft. Bu RNRL's outcome will only knownal battle with RIL is resolved.
PRANAV SANGHAVI answers, If you want to look at a power sector stock forthe short term I would still go with NTPC.
Naveen asked, hi i wanted to invest around 20000. can you pls. suggest
PRANAV SANGHAVI answers, Wait for a correction in January before you start buying stocks like SBI, L&T, RIL, NTPC, IDFC etc.
sandeep asked, i hold ispat 550 share @ 14.35 i hold or not
PRANAV SANGHAVI answers, I would exit and look at a Tisco or JSW. Even a Bharat Forge looks atractive at current levels.
arunm asked, dear pranav since markets are not expected to boom in the near future, How would you advise selling out of money call options e.g 3300 calls at current market price & selling puts of l& t at 740 for month of january
PRANAV SANGHAVI answers, Selling an out of money call option could prove profitable in the very short term. In case of L&T also the trade could prove profitable as they are expected to give good results.
amitjain27 asked, Hi Pranav, Do you suggest buying Unitech at these levels with 2-3 years horizon
PRANAV SANGHAVI answers, I had recommended the stock at around Rs. 25 levels in previous chats. I would surely take a punt on a company lke Unitech with a long term outlook to come out of it's woes and givea decent return to shareholders in that time frame. asked, any good stock which is available at 10 % price
PRANAV SANGHAVI answers, There are many like Suzlon, Unitech, Indian Hotels, Videocon are just a few of them. But they have alread risen from their lows. If the markets come down in January you could look at them.
ANITA asked, Which shares should buy to invest for short term money.
PRANAV SANGHAVI answers, In these volatil times and with the current global economic scenario, I would not invest with a short in mind.
bear asked, what's the future of stock from here ?
PRANAV SANGHAVI answers, I think we will see a range bound market for the next 6 to 9 onths before we see some sign of an economic rebound globally.
vijay asked, i have 100 shares of SesaGoa @ rs. 100/- & 100 shares of archies @ rs. 69/- each. what should i do?
PRANAV SANGHAVI answers, I like Sesa as a stock it has a strong balance sheet and has been giving steady growth in both profits and topline. I would surely hold on to the stock.
munnabhai asked, Which sectors are the best for the time being looking at 2-3 years forward? Please mention 2 best stocks of each sector.
PRANAV SANGHAVI answers, I would look at the heavy engineering sector andn the banking sector for the next 2 to 3 years time frame.
PRANAV SANGHAVI answers, Banks ae in a decent shape currently. Look at SBI, it has give fantastic quarterly results depioste high interest rates and slow credit offtake. Property prices will come down but the buying of properties might get an impetus through lower interest rates over a 6 t 12 month period.
Anurag asked, I bought reliance shares a few days ago at Rs.1380.00, whether should i hold it or sell it ?
PRANAV SANGHAVI answers, You have got in at a high price. The stock was available at Rs. 1000 just a month or so back. In the short term if the rally continues you should make an exit in profit. As when the markets do fall RIl should fall as it is an index heavyweight.
Amit asked, i had bought 170 shares of punj Llyod@280, what is the future of this share? shall i hold it for some more time?
PRANAV SANGHAVI answers, I would hold on to the stock for another 12 months atleast.
Akash asked, What should we do with stocks purchased when market was at 17k Level, these stocks are with 23% loss, can we recover in near future or we have to exit with loss
PRANAV SANGHAVI answers, I don't think you will recover your losses very soon. It will take time and you will have to be patient.
dhar asked, Tell me one good stock from Banking sector & one from capital good and at which price they can be aquired ?
PRANAV SANGHAVI answers, I like SBI, L&T. I would look at L&T around Rs. 700 and below and SBI below Rs. 1100.
seth asked, How would Bank Of Maharashtra be and Chennai Petroleum,and CRISIL.
PRANAV SANGHAVI answers, I would look at stonger stocks in the same sector. CRISIL being the exception. Look at an SBI, PNB, BOI in the banking sector.
shubha asked, View on Voltamp transformers for 3 years please?
PRANAV SANGHAVI answers, I think the stock hd got majorly battered down and with a 3 year otlook the stock has very good potential.
p asked, can i take kalayani steel & idfc
PRANAV SANGHAVI answers, I would surely look at IDFC but not Kalyani Steel.
hiprav asked, Hi Pranav, i nvested 4.5 lacs this year iam in lossof 45%,i have stocks like dlf,hdil,indian bank,ucobank,rel powe rel peterol,vijayabank etc. Which stocks i can buy in 2009 for long term
PRANAV SANGHAVI answers, Majority of the stocks you hold are quality stocks so you should not be that worried. By the end of 2009 you should see a major recover of your losses if you are not into profit already.
mallikarjun asked, hi, i want to buy aban offshore
PRANAV SANGHAVI answers, It is a goo stock and it was available at very attraciv rates just a few months back. I would not pick up the stock when the markets correct slightly.
ashokshah asked, at which price i should exit idfc
PRANAV SANGHAVI answers, It would depend on your profit percentage target. Say you wanted to make a 30% return on your investment, so when you hit that percentage.
dfg asked, I have TCS @488, ROLTA@128, HCLTECH@ 105,PUNJLLOYD@151, BGRENERGY@ 147. Should I hold ? If yes for how long
PRANAV SANGHAVI answers, I think you can hold Punj Lloyd, TCS albiet with a view to hold for 1 to 2 years.
neelam asked, Is RNRL a better option for investing
PRANAV SANGHAVI answers, Not till the outcome of its legal battle is known.
arunm asked, banks are bound to make huge treasury profits as int rates are bound to come down which banks would you sugest
PRANAV SANGHAVI answers, I have already mentined in my earlier reply that I like the banking sector so you could look at it.
pravin asked, what should be nifty strategy for this expiry jan 2009?
PRANAV SANGHAVI answers, If I was long would start booking profits at 3100 levels. On the lower band I think 2800 has some resistance, if that gets broken then we could see further lows.
Pradeep asked, Should we buy IFCI @ this level (20 - 22)
PRANAV SANGHAVI answers, Not if you are an investor. But for speculation you could take a punt as it is a trader friendly and high F&O volume stock.
VIKRAM asked, I am holding 500 shares of Aban Offshore at 720?If I hold it for 5-7 years then will I get good returns?What are the chances of Aban hitting 5000 again in the next bull run?Is it a possibility?Please reply?Please?
PRANAV SANGHAVI answers, If you study Aban's balance sheet, I would surely think in 5-7 years you would make a very decent profit.
naveen kumar asked, which are the real estate we can buy now
PRANAV SANGHAVI answers, I would still go with the frontliners like DLF and Unitech. It will take them time to recover from the bleak economic scenario for their sector but I am pretty certain they will come out of their woes over a period of time.
MANOJ asked,  Sir, I have purchase of chambel fertilizer qty. 500 share @ rs. 42/- what is the future of this share
PRANAV SANGHAVI answers, The fertilizer stocks may not do as well as predicted. The prices of certain products like Urea have dropped cosiderably over the past few months which may affect the fertilizer companies.
ABAN asked, Will we retest Oct lows or go below that?Or have we seen the bottom?Are we consolidating now?
PRANAV SANGHAVI answers, I feel in all probablities we will touch the October lows once again. Before we make a consorted upmove.
guru asked, suggest some midcap stocks for 1-2 year range
PRANAV SANGHAVI answers, I would look at IDFC, Indian Hotels, Voltas, Titan, Bharat Forge, Sesa Goa etc.
PBJ asked, hi Pranav, just small query one more time as unanswered before.wuts the prospects of oriental trimex and ashok leyland...please answer
PRANAV SANGHAVI answers, Oriental I don't follt Ashok Leylanow bud you could book profits if the stock rises by another 10 to 20% or reaches Rs. 18 from its current levels.
Debangshu asked,  I have thousand shares of ITC, do you suggest me exiting the share annd investing in another script if I am looking for a 2 year perspective..?
PRANAV SANGHAVI answers, ITC like most other FMCG stocks like Level and Nestle have been performers in this down market. When the markets do rebound they may not perform in tandem with the index. Though in these volatile times stocks like HUL and ITC have been safe bets.
ShareKhan asked, i wld like to know...if its safe to invest in a pertoleum industry...i m a long time planner and i dont want short term u think petroleum markets will come up...and is it safe to buy share now???
PRANAV SANGHAVI answers, I would not look at pretroleum stocks in the short term. With the prices having dropped by over 60% from it's highs. I wold not look at ONG
Sanjay25 asked, Pranav, I am holding on to Reliance Industries and Suzlon.. How do u veiw to these stocks.
PRANAV SANGHAVI answers, RIL is an index heavyweight an it will move in tandem with the markets. Therefore in the short term volatile and range nd andint he longer term steady rise post a consolidation phase. Suzlon one should look at with a 2 to 3 year outlook.
PRANAV SANGHAVI says, Well it's time for me to leave. I take this opportunity to wish all of you a very happy and a prosperous New Year!!