The markets are lackluster today due to lack of buying interest. At this juncture, which stocks and sectors do experts feel one should invest in?
Speaking about his top trade for the day Rajat K Bose of rajatkbose.com says, "I would say that one could safely have a look at Asahi India. If it stays above Rs 121-122 range, then it may be heading towards Rs 128-129."
He adds, "One can also look at Finolex Pipes. My target for the day is first Rs 99.75 and if it manages to stay above that, then may be Rs 103-104 could well be reached. So these stocks are looking good."
Giving his picks for the medium term, he says, "Saregama's stock has actually been consolidating for seven to eight trading sessions. After that, this jump has happened and now one needs to watch out for a level of Rs 204. I will be closely watching the level of Rs 204 to Rs 210, and if it manages to get past that, then definitely this stock can give a good medium term upswing."
According to Bose, ONGC is giving leadership to the market. "I was watching the level of Rs 846 yesterday, today that Rs 846 has been crossed and it is trading decisively above that. So maybe it is heading towards Rs 860, which is the immediate target. Of course that can be reached anytime now."
He goes on to say, "After that, Rs 873 would be the next target to look at. Around that level there could be some profit booking because ONGC never sustains two big moves consecutively."
Bose is very positive on Voltas. He mentions, "First the target will be around Rs 110 for Voltas and then the target will be Rs 117. As of now, one should be watching the level of Rs 102 for support and if it manages to stay above Rs 105, then the next target will be Rs 110 and then Rs 117, the chart really looks good, It is a buy here."
Speaking on the banking and financial services sector, he states that Bank of India has been an out performer.
He adds, "The run was pretty much vertical for Indiabulls Financial Services. Yet if it manages to stay above Rs 480, then the next target is Rs 485 and then Rs 496 would be another target to watch out for. Unless and until it falls below Rs 474, it would maintain its strength."
Speaking about which sectors will give a lead to the market Vibhav Kapoor of IL&FS says, "Probably cement could be one sector, which could take a lead. Banking is of course another sector, which could still continue to do very well with benign interest rates."
He is positive on the sugar space. "I am reasonably positive on sugar. Of course, the last few months have been very bad for sugar stocks and they have fallen steeply. The ethanol issue seems to be resolved now and the pricing of Rs 21.5-22 is almost fixed in most of the states. So that will help sugar companies going forward," says Kapoor.
He adds, "Selectively, a lot of benefit over 6-12 months will come from the fact that a lot of these companies particularly in the northern belt are going to start power projects. That will be a big driver over the next two months. So all in all, it's time to accumulate gradually and sugar stocks should give good returns over the next 6-12 months."
Speaking on the auto space, he says, "The four-wheelers and commercial vehicles still look very good. Although prices have run up in some of them, I think one should be looking at every correction as a buying opportunity in them. We are positive on the four-wheelers, both commercial vehicles as well as tractors and passenger cars. But we are not so positive on two-wheelers at this point of time."
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