After Monday's mayhem, the investors on Wednesday had something to cheer with Sensex gaining 296 points at close.
The Sensex opened 129 points higher at 15,019. What strategy should you adopt? Which stocks to buy, sell and hold?
In an hour-long chat on rediff.com, market expert Pranav Sanghavi, director, Jitendra Harjivandas Securities (P) Ltd, answered to many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Hello everyone and good afternoon. Welcome to the chat and let's begin.
kk asked, Hi Pranav, do you feel the correction is a;most over and one should enter the markets now?
PRANAV SANGHAVI answers, at 2008-06-11 16:04:28I think it may still go a bit further down and break the 14000 level. I don't think it will go much lower than there. One can surely buy at those levels but quality stocks witha long term outlook.
kk asked, is DLF a good buy below 500
PRANAV SANGHAVI answers, Yes DLF has given fantastic results. It has gone below the issueprice also so I would surley look at it at every dip.
soni asked, Hello Pranav ji, i want to buy Tata Motors and M&M... is this a good level to enter those?
PRANAV SANGHAVI answers, Today all the auto stocks were up. With a long term view you could look at them. But there are factors like rising steel prices, higher interest rates etc. to be weighed in before investing.
amit asked, i am holding 80 shares of punj llyod, 60 NTPC and 50 rain commodities , punj llyod was going down n down from last 4 days , what is the future of these three stocks.
PRANAV SANGHAVI answers, Punj Lloyd is linked to the infrastruture sector and with the sector thestockis also moving downwards. I would surely look at it with a long term view as the company is a decent performer and I don't think the government will cut the alloted budget for infrastructure development over the next few years. NTPC is a sure hold.
soni asked, Hello Pranav Ji, at what levels should one buy Indian Hotels, IDFC and ITC
PRANAV SANGHAVI answers, I would start accumalating IH from these levels and on every dip there after. As I have always mentioned always buy in small parts. IDFC also is a strong stock to look at with a long term outlook. ITC has held itsfort in these volatile times and I have been a fan of the company from some time. I would surely look at all the three stocks you have mentioned but on dips and in small parts.
sanjaysharma asked, when is the real estate shares are suppose to go up? Also what's your view about ranbaxy at current market stage?
PRANAV SANGHAVI answers, I think there is a general feelin that the non-prime sectors in the real estate would correct by 15 to 20% over the next 9 to 12 months. I would look at stocks which are strong performers but close to theri 52 week lows and have the potential to still deliver double digit growth. With the announcement by Ranbaxy today things do look rosy for the company in the near future. But what actually transpires from now and till the closure of the transaction should be followed. I think it will only add value to the company in the long term.
srinivas asked, hello,what is the future of ivrcl shares, i had bought for 400 what is the future
PRANAV SANGHAVI answers, You will have to wait for a long term to see those levels as I don't think the stock will go anywhere in the very near future.
Rakesh asked, I have 2000 shares of RPL @ 200. what will future of RPL for 1 yr target?
PRANAV SANGHAVI answers, I think in a falling market the stock was up a bit. I think as the commercial production date comes closer the price of the stock should move up. You could easily see a 2 to 40% jump in prices once the production starts.
mukund asked, Good Afternoon Pranav, i have 100 dena bank at 50Rs. shall i buy more? my outlook is 2 years. which other stocks i can look for at these levels?
PRANAV SANGHAVI answers, I think you will see decent returns over that time frame on the stock.
sanjaysharma asked, what do you project about rel. power?
PRANAV SANGHAVI answers, I don't think the stock will do anything till its first power plant has commenced. Unless the company announces some positive news like an aquisition etc.
Dharm asked, Hi Pranav I have 150 Welspun Guj at 250. Whether I should sell or hold? Thanks
PRANAV SANGHAVI answers, Yes you could hold on to the stock with a 9 to 12 month outlook.
munna asked, Hi Pranav, what are your five top picks for 6-9 months.
PRANAV SANGHAVI answers, I would look at SBI, L&T, IDFC, Sesa Goa, NTPC, DLF, BHEL amongst others etc.
Thomas asked, What do you say about Aurobindo pharma, Colgate palmolive and Cybermate? Hold or sell?
PRANAV SANGHAVI answers, I think Aurobindo is a midlevel player in the pharma space. It looks to perform well in terms of results and if it continues the same you could see a 20 to 30% return on the stock in 6 to 12 months. CP is an FMCG plyer and all the FMCG stocks have been pretty steady over the past few weeks considering the volatile nature of the current markets with a weak bias. You could hold on.
munna asked, NTPC or RPOWER for 10 years
PRANAV SANGHAVI answers, I would go with NTPC.
amar asked, Hi paranav i have Ispat 200 @46 & loyyd steel 400 @ 20 .what should i do.......
PRANAV SANGHAVI answers, I would book losses and switch to quality stocks.
upashu asked, I have 20 RPL share at 185.what should i do?
PRANAV SANGHAVI answers, Hold on.
mkj asked, i had invested 3 lakhs in icici share , when price is 1444, when it touches the value.
PRANAV SANGHAVI answers, It will surely take some time for the stock to reach its previous highs. But I would not bet against ICICI Bank too. It has been the leading private sector bank along with HDFC Bank and I think despite the interest rate worries the stock will still perform well over time.
riyas asked, Hi Pranav, can i buy SBI, BHEL and GRASIM shares at the current price. I can hold it for 1 year period. Please advice. Can we expect more falls at these stocks. Thanks
PRANAV SANGHAVI answers, Yes you could surely look at them but not on a day like today whent he markets were up by 300 points but days like yesterday and day before. Also buy in small parts so your price gets avereaged out.
upashu asked, Is this time good for buying RIL,SBI and JPAssociate?
PRANAV SANGHAVI answers, You could suely look at RIL an SBI. They are index heavy wieghts but as I said earlier the markets cousl weaken a bit further from here too. So I would wait for a fall before buying in to the stocks in small parts.
VKY asked, Hi I have 100 shares of NMDC,50 GMDC,760 GTL INFRA.I can hold it for 3 years?Can I make good profit out of it?Please reply?
PRANAV SANGHAVI answers, I am sure you will with that time frame. The mineral stocks especially should reap you good returns.
MUNI asked, HI PRANAV...HOW THE OIL PRICES ARE AFFECTING THE INDIAN STOCK MARKET...COULD YOU PLEASE EXPLAIN IN BRIEF..
PRANAV SANGHAVI answers, The rising oil prices are surely a big concern for our country. One there would be an indirect effect on inflation as Diesel accounts for a large part of the transportation costs. The left government and the opposition sadly does not permit our running government to increas ethe local fuel prices to match the import costs thereby making the government provide for narly 200,000 crores of potential losses of the Oil marketing companies of India. There are various other factors but too little time to explain.
dfd asked, What is the advantage of getting bonus shares from shareholder perspective?
PRANAV SANGHAVI answers, On a longer term basis the price of the stock always rises post the bonus price correction thereby creating additional value for the shareholder. It is also a sign that the company is confident of its good performance in times to come.
Ankur asked, hello pranav, i would like to invest in the it, bank , power sector
so plz ask me which script will be go rise in the future.
PRANAV SANGHAVI answers, At this juncture I would wait for a fall before I invest fresh money into the stocks. The FII's are still net sellers barring maybe today. Beyond the fall you could look at stocks like Wipro, INFY, TCS, SBI, UCO, HDFC, ICICI, NTPC, Tata Power, Power Grid etc.
champak asked, Hello sir I have got 100 NTPC at 159 and 200 Neybeli Lignite at 107 , 10 L & T at 3000 whats the future of these stocks
PRANAV SANGHAVI answers, All to me look to have good future and I would surley hold on to them.
Subramanian asked, I bought TCS Rs.1365/- 16 shares 18 moths ago. Can I average it now, it seems it will never reach this rate in the near future, any chance for bonus
PRANAV SANGHAVI answers, I don't think the stock would see that price in the near future. You would average out but only on major dips.
ashok asked, I had grassim @ RS.2378 what would i do now ?
PRANAV SANGHAVI answers, I would hold on. It is selling its sponge iron business and going to raise about 1000 crores. I like the company and despite the governmental interference with the cement sector I don't think the stock will get affected majorly and continue its strong performance.
natraj.n asked, Hi Pranav, I am holding 300 shares of DCB bought at 94, what should i do... Please suggest
PRANAV SANGHAVI answers, You will have to hold on for a long time as the second tier stocks will take that much more time to recover from the bearish phase that we are currently witnessing.
Raman asked, I got DLF for 968/- shall hold it, will i recover my loss?
PRANAV SANGHAVI answers, I would average out at lower levels if you can. And hold on for a year.
Mohan asked, Hi Pranav, would like your call on Aban Offshore. I have a significant portion of my portfolio in it.
PRANAV SANGHAVI answers, Aban is the largest drilling services provider in the country. With the recent foreign acquisition the company has grown larger and with the oil prices rising rapidly the demand for oil rigs is only going up and also its daily rentals. I would surely hold on.
karthik asked, i have hatsun agro shares , now it is 400/ share , is this the right time to sell my share
PRANAV SANGHAVI answers, Sorry I don't follow that scrip so will not be able to help you.
Raman asked, Will Sensex touch magic figure of 21000 again in near future?
PRANAV SANGHAVI answers, I seriously doubt it.
upashu asked, what do you think about future of stock market for 1 yr/2yr? it will grow as it showed in past 5 years or it will go upto 4000 level where it started from.
PRANAV SANGHAVI answers, See we have seen a long bull run spanning nearly 4-5 years. So if we are in a bearish phase for 6 to 9 months it would only be healthy. I doubt that 4000 levels on the Sensex would be possible.
Devendra asked, I had purchase 25 shares of S.B.I. @2400/=. At present Rate of SBI is near about 1350/=. Now suggest me what to do?
PRANAV SANGHAVI answers, I would average at lower levels and hold on.
ashok asked, i have idea cell, hpcl, aishwarya tele, grassim, hdfc bank, suzlon which share I hold and which share i sell ?
PRANAV SANGHAVI answers, We are more towards the bottoms of the markets than the highs. So I would not sell good stocks in a hurry.Stocks like HDFC, Suzlon Idea Cell, etc can surely be held on to.
PranavSanghvi asked, HI Pranav, Is this a good time to buy power stocks with a long term perspective of say 3-5 years? If Yes then which stocks would you recommend ?
PRANAV SANGHAVI answers, Yes a lot of them have corrected sharply and look to be oer sold. You could surely look at them with that time frame.
Vivek Arora asked, I have some shares of Bharti Airtel @ 815 and Reliance power 235. Whether i should retian or sell.
PRANAV SANGHAVI answers, The telecom companies will face stiff competition in the near future. But both these companies are the market leaders and surely will have strategies to combat the new coming competition. With a long term view you can surely hold on.
Litman asked, Hi pranav i lost nearly Rs.60,000 for past 10 days in share market. I dont know wat to do. I am having 150 Tata motors baught at Rs.670/share and 200 GMR infra @ Rs.180/share and 200 Jp Associates @ Rs.240/share and 200 Power grid @ Rs.130/share. Kindly advise me what to do with those stocks. And shall i buy Yes Bank @ Rs.138/Share?
PRANAV SANGHAVI answers, All the stocksyou mention are good stocks but you would have to hold them for 6 to 12 months to see your prices. In the very short term the market looks weak and at the most rangebound. I would not buy the stock at these levels.
santhosh asked, Hi Pranav I donot know much about mutual funds,can you tell me on which mutual fund should I invest in order to get high return after five years?
PRANAV SANGHAVI answers, You should essentially look at large cap diversified funds which would yeild you decent returns over the 5 year term. I am not allowed to mention speific funds sorry.
ajay asked, do you see 12000 in near term, or it is operator's rumour
PRANAV SANGHAVI answers, I would say that the 14000 mark maybe breached. But beyond that I don't think it would fall down to 12000 levels. When sentiments are bad every thing looks negative. But I would turna buyer around the 14000 levels with a 1 year outlook in quality stocks.
zinath asked, shd i wait for nifty to come to 4200 or 4300
PRANAV SANGHAVI answers, Yes it could even breac the 4000 levels. So do not hurry in buying seeing todays upturn which could well be just a technical bounce back after past few sessions.
sunila asked, hello sir, i already invest 3lack in sbi contra,magnum sector funds what u r suggesting me to in this type of situation.please tell me.thanks in advance.
PRANAV SANGHAVI answers, I would need to see its protfolio mix before I can comment on the same.
Hasan asked, Please let me knwo about the prospects of NMDC(National mineral).
PRANAV SANGHAVI answers, I think it is a good bet with a long term perspective.
rohit asked, which sectors will be good in the future and buying market leaders will be a good option
PRANAV SANGHAVI answers, More than sectors I think it will be the index heavy weights which might lead the markets.
Ratan asked, Hi Please advise which to hold/sell? AMARAJ(188), HDFBAN(1,406), GECALS(1,482), DLF(630), SBI(1250)
PRANAV SANGHAVI answers, I would hold on to SBI, DLF, HDFC Bank.
ajay asked, WHEN THE MKT WILL COME ON 18000.PLEASE ADVICE SOME GOOD PICKS FOR 3-4 MONTH HOLDING
PRANAV SANGHAVI answers, I don't think it will jump to 18000 levels very soon. It will surely take some time.
Rajesh asked, what are the prospects of Dredging Corporation and COncor India?
PRANAV SANGHAVI answers, I think they will perform well in the future but with a time frame of 9 to 12 months.
upashu asked, Are RIL, L&T,SBI and BHEL are good buy at cuurent level?
PRANAV SANGHAVI answers, Being index stocks they also might correct marginally with the index if it moves down. But one could start buying n small quantities on every major dips like we witnessed the past two days.
aamir asked, hi pranav iz it bettr to sell or hold ranbaxy after daichii-ranbaxy deal
PRANAV SANGHAVI answers, I think it will add good value to the compan and with the management not changing I think I would surely hold on.
manoharan asked, Sir, can we enter sugar stocks now?
PRANAV SANGHAVI answers, I don't think this is a great time to be sugar stocks.
ravi asked, Hi pranav, is this the good time to buy realty stocks. AT the end of todays session realty stocks picked up. Do you still feel the uncertainty in the market...
PRANAV SANGHAVI answers, You could look at the frontline real estate stocks like DLF, Unitech etc but only with a long term outlook.
PRANAV SANGHAVI says, Well it has been great chatting with you all. But its time to me to leave so bye for now.
Chat with Pranav every Wednesday!