Even though the Sensex tasted some gains today the sentiment has more or less remained negative.
The Sensex opened with a negative gap of 185 points on Wednesday.
In such volatile times, what strategy should you adopt? Which stocks to buy, sell and hold?
In an hour-long chat on
rediff.com on Wednesday,
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.
arun asked, is this the right time to eneter nagarjunfert
PRANAV SANGHAVI answers, at 2008-08-13 15:50:16I think with the recent news about the sbsidy you could look at it for 3 to 6 months outlook.
sameer asked, Hi, What is your take on Aban offshore and Greatoffshore. Is it right time to buy now as the prices are fallen these days.? Do they have more potential to perform better in the future? Kindly advice. Thanks
PRANAV SANGHAVI answers, With the prices of Crude Oil ruling so high, the demand for offshore drilling services is not oging to die down anytime soon. I would stay invested in these stocks with a 1 to 2 year outlook. Aban has made some acquisitions also and could deliver better results in the future.
SRB asked, Shall i buy infosys at 1590 for 1 year holding. Please suggest.
PRANAV SANGHAVI answers, You could surely look at the stock with that time frame but I would wait for a dip before buying the stock. Anytime the markets corrects by 3 to 5 % would be a good time to pick up th stocks with a 1 year outlook.
Raj asked, Hi Pranv, I like to buy coal stock and keep it in my portfolio for 2 years timeframe. Which is the better coal stock among Gujrat NRE, Guj Minerals, Sesa goa and Neyveli. Thanks
PRANAV SANGHAVI answers, I would look at stocks like Neyvelli, and Sesa. Sesa especially should deliver good returns over the next 2 year time frame.
Naren asked, Shall i buy L&T at Rs 2800/share or wait for more correction. I like to get the bonus share for L&T.
PRANAV SANGHAVI answers, With a long term outlook you can suely look at the stock. The pric should keep moving up as the record date for the bonus comes closer. If there is a slight correction you can surely pick up the stock.
kris asked, How about indian hotels share.?
PRANAV SANGHAVI answers, I think it is grossly undervalued and I would surely look at it with a 1 to 2 year outlook even at current levels.
sugu asked, Hi pranav, What is the term "bonus share"? Will they give additional shares as bonus or will they split the acutal number of shares into some ratio like 1:1. For example: Sesa goa announced bonus share when the price was Rs 3500 and stock split. The calculation is like Stock split 3500/10= Rs 350 for Rs 1 face value. But currently the share price is trading around Rs 175. Is it because of the bonus share?. The only difference is the total number of shares will be increaed and the amount that invested is remains same. Kindly help me to understand the concept.
PRANAV SANGHAVI answers, It is because they split the stock from Rs. 10 to Re 1 and also gave 1 bonus share for every share held. Therefore you have to divide the cumbonu/split price by 20 to get the calculation for current price as 1 share held pre-bonus/split has become 20 shares.
riyas asked, Hi pranv, Please advice me which is the best Gold ETF fund for 5 to 10 year investment. Thanks
PRANAV SANGHAVI answers, Investing in Gold through an ETF is a far more efficient way to invet in terms of taxes. Essentially it is your call if you wish to invest in Gold or not.
riyas asked, Hi, Are we expecting more downside in the stock market now. If yes, what are the factors that affect the market.? What low level sensex we can expect? Thanks
PRANAV SANGHAVI answers, A few of the factorshave turned positie like a stable government and lower Oil prices. But it could turn around equally quickly. I feel we still could correct one time before going to higher levels.
RK asked, Shall i buy great eastern at cmp? Thanks
PRANAV SANGHAVI answers, I would lookat it at lower levels.
sanket asked, I AM SANKET I AM HAVING SHARE OF TTML 50 AT PRICE OF 28.30 SHOULD I HOLD OR SALE GIVE ME THE GIDUENCE WHAT TO DO
PRANAV SANGHAVI answers, I would switch to a quality stock. THere is not much going for TTML in the short term unless some merger or anyother major announcement is made.
taxmann asked, I have Radico Khaitan@84 and Sun TV@325 what about there future price
PRANAV SANGHAVI answers, You could hold on to Radico Khaitan with a long term outlook.
anand asked, sir can we see the sensex onceagain @ 21000 level?
PRANAV SANGHAVI answers, If our corporates give better results with good profit growth rates then we coudl in the future. But I don't think it will be very soon.
uday asked, I am planning to buy se sa goa is it good one & i am looking for 6 months
PRANAV SANGHAVI answers, I have liked the stock for some time now. I am still bullish on the stock. It may see a bit of a downturn when it gets out of ND period but beyond that over a longer term it looks good.
girish asked, Hi Pranav, shall i buy punj loyed at this rate between 275 to 285
PRANAV SANGHAVI answers, Only if you can hold it for 1 to 2 years.
varun asked, Hi sanghvi, i am varun. i am having a share of jindal steel and power 2110.
PRANAV SANGHAVI answers, It can surely be held.
sushant asked, hi... me holding BOI 850 purchased at 312 & PNB 200 @ 519 what is the future of this stocks?
PRANAV SANGHAVI answers, The rates are a bit on the higher side but I would srely hold on to both sa they are surley amongst the better Public Sector Banks. Currently with a higher interest rate scenario and possible hikes in CRR ratios again they may underperform. But in the long term I am sure they will do well.
anand asked, i had bought the dlf @ 525, unitech@ 260 praj @ 250 what is the future?
PRANAV SANGHAVI answers, I like all the stocks you have mentioned and I would surely hold on to all three.
nirwal.deepak asked, is it right time to invest in apollo tyre , idfc and reliance comm.
PRANAV SANGHAVI answers, Ifyou can look at these stocks with a 1 year outlook you could look at them.
rajiv asked, hi pranav,Kindly suggest what to hold and what to sell,i have GMR Infra@160,Powergrid@118,idfc@125,mtnl@128,BOI@245,Seasagoa@177,jphydro@57,gtlinfra@48,IDBI@125,NTPC@170,kindly give ur views on this
PRANAV SANGHAVI answers, You
could surely hold on to GMR, SESA, MTNL, BOI, IDFC, Powergrid amongst the stocks you mention.
salabh asked, i have 2 invest 1lakh where should i invest
PRANAV SANGHAVI answers, In this uncertain scenario in the short term I would pl;ay saf and stick with the frontline stocks like RL, L&T, SBI etc.
rocky asked, Hi pranav. I have not yet invested in share market. Is it the right time to enter into share market or do i need to wait for some more time? Please suggest. I need to buy stocks with a 2 years perspective..
PRANAV SANGHAVI answers, I would wait for some more time when the market corrects a bit. With that time frame if you select quality stocks I think you could get a decent return even from current levels.
balaa asked, is it right time to invest in stock market, has the worst is over..
PRANAV SANGHAVI answers, It looks like the worst is over for now. But Markets are news and events driven and if toorrow say SP withdraws their support for whatever reason we could see a collapse again.
AYAZ asked, PRANAV, HI, WHAT IS THE FUTURE FOR GOA CARBO, I AM HOLDING THIS STOCKS @72/-
PRANAV SANGHAVI answers, You coud surely hold on for another 6 monts at least. You should see a decent profit.
abhijit asked, i hv 200 shares of india cement @190,what is future?
PRANAV SANGHAVI answers, Cement stocks may undeperform in the hort term but over a 1 year time frame you should see higher levels.
jacky asked, Hi Pranav,i have invested about 4.3 lkhs in stocks. My stocks include SBI,ICICI,RELCAP,Denabank,DLF,TCS,INFY,RIL,ONGC,TISCO,SAIL,RELCOM,Bharti(BHATE).Currently i am making a loss of 30K on the whole portfolio. How long should i be holding the above stocks to see some reasonable profits. I am still buying at the lower levels. is ot ok to buy TISCO and RELCOM at these levels? Thanks
PRANAV SANGHAVI answers, I think you have chosen the stocks wisely and you can continue to hold on without wrrying. Your loss is miniscule a compared to what most other players are facing as the market had correted by over 40% and you are just around 9% down which is fantastic.
Dumbo asked, Pranav Sir : What is your price projection for NMDC in a year from now ? I am told that NMDC is an excellent investment with a long-term perspective. Would you buy and if so, hold NMDC for how long ? Thank you (in advance, Pranav Sir !)
PRANAV SANGHAVI answers, I think with ath time frame of 1 to 2 years you can surely hold on.
anand asked, i had also bought the GMRINFRA @ 212 & NTPC @245 levels What is the future?
PRANAV SANGHAVI answers, You can hold on to both with long term outlook. In the short term you may not see a decent profit.
rohan asked, i hv 200 shares of RNRL @95,what is future?
PRANAV SANGHAVI answers, As I have been saying over the past few months the stocks performance will depend on the outcome of the legal battle between RIL and RNRL.
VCLINGAM asked, Hi, Can I buy SBI, RELIANCE, DLF, L&T at this level? What is the target for these stocks for a period of 6 months to 1 year?
PRANAV SANGHAVI answers, Buy in parts on every dip.
HARDY asked, HI, PRANAV i have 2000 shares of zandu Pharma. Do I hold or sell?
PRANAV SANGHAVI answers, Yes surely hold on.
lob asked, I had bought Dr. Reddy at 712 two yrs back whether to sell or hold, also shall I hold TCS,INFY; Shall I buy L&t and BHEL at current levels, Thanks
PRANAV SANGHAVI answers, You could hold on to the stocks you mention. L&T and BHEL also have to be looked at with a long term outlook. L&T is quoting cum bonus so you could look at it.
shreeram asked, holding chambal, bought at 88 short tem persp what to do ? same for praj - 190 mid day 30.25 renuka sugar 138 balrampur chini 99
PRANAV SANGHAVI answers, With the recent news on the fertilizer subsidy you can hold on to the stock. Praj has to be with a 1 to 2 year outlook. Also Miday is below your price so you will have to hold on for another 3 to 6 months maybe to see your price.
buster asked, Hi Pranav... I have invested in L&T, Sesa Goa, Aban offshore, Voltas, Bhel and HDFC Bank recently. Please opine on the near term (3 months) and long term (1-2 years) future. Regards. Thanks in advance...
PRANAV SANGHAVI answers, You have invested in good quality stocks and you shall get a better return over the longer term.
satyen asked, whats your view abt IT and power
PRANAV SANGHAVI answers, In the IT sector I think the top 5 to 10 companies should fare well. The smaller companies will have to look or synergistic mergers or acquisitions to survive over the next year or so especially if they are US business dependant.
daspeedee asked, what is 1-year target price for L&T ?
PRANAV SANGHAVI answers, I would look at a 20 to 30 % return over year from L&T.
satyen asked, hi pranav what abt RPL
PRANAV SANGHAVI answers, I think once the commercial production starts we could seea some higher prices in the stock. With about 2-3 quarters of results we could see further movement in the stock depending on it's performance.
daspeedee asked, what are the prospects of india infoline ?i know being a competitor u may not like 2 comment on this scrip ,.i request can u pls give ur unbiased view ?
PRANAV SANGHAVI answers, The are not our only competitors there are over 1000 registered brokers in India. But from the scurities companies I like INdia Bull, Geojit especially.
senthil asked, can i hold L&T shares
PRANAV SANGHAVI answers, Yes surely.
pradipta asked, i have 350 stocks of rcom in future what do you think
PRANAV SANGHAVI answers, With the MTN deal going sour the stoc took a beating. But with a long term perspecive you could surely look at the stock along with Bharti, they bth are the market leaders.
falgun asked, I have 100 Sesa goa@ 175... what should i do?
PRANAV SANGHAVI answers, Surely hold on.
aditi asked, i m desperatly wish to enter in stock market but dont know how to take take 1st step , i wish to invest minimum amount so that i can avoid risk factors. pls tell me at which minimum amount i can start my investment . please looking forward ur early +ve and early reply rally thanking u
PRANAV SANGHAVI answers, First of all take classes from the training institues of BSE nd NSe. Thenset up a brokeage account with a broker. You can start with as little as 5-10,000 Rupees.
PRANAV SANGHAVI says, Well it is time for me to leave. Bye or now and happy investing.