There seems to be no respite for stock investors with the market closing the week in the negative region.
Will the Sensex move up from this point? Or is the Sensex likely to sink further? What strategy should you 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 rediff.com, 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.Gajanand asked, Hello Pranav, please comment on BellarySteel, Birla power, Rana sugars, ISPAT industy and JP hydro power, as i thought of buying these for 2 lacks divided equally among all the shares.
PRANAV SANGHAVI answers, All the stocks you mention are high beta stocks with extreme volatility and highly liquid in the F&O segment with lot of activity. With the correction witnessed I would tread extremely cautiously while trading these stocks.
jai asked, i have arvind remedies 1000 @ 6.00 what shouldi do
PRANAV SANGHAVI answers, Sell and switch to a quality stock.
venkat asked, hi pranav , i have 200 TTML @37, 100 BURNPUR @ 30, 50 RPL @ 135, 50 POWERGRID @ 95 What is the future for these shares
PRANAV SANGHAVI answers, I would hold on to Power Grid. TTML is more of a news driven stock as it is still a loss making company. Burnpur is relatively a new stock and I would wait for some mroe time before I invest in the stock.
kreemu asked, Hi pranav, I have 200 Arvind mills @ 51.50. please suggest me how long can i hold them for long and short term??
PRANAV SANGHAVI answers, Arvind Mills will take that much more time than the frontline stocks because all the mid-cap and small cap stocks always take more time to rise up and Arvind being a textil stock which has been a laggard sector will take that much more time.
rohit63 asked, hi pranav, i had taken on my brokers reccommdation 15000 shares of ispat industries, which has come down and at an average price of 60rs. whats your input on ispat?
PRANAV SANGHAVI answers, First of all you should not go by any persons recommendation and make investments. One should always study the company they are getting into before investing hard earned money. I have always mentioned that there are better stocks in its segment like SAIL and Tisco, so I would stick to them. Ispat is a traders fancy and could move up if the market rallies.
nicku asked, what is your take on GVFILM, Ballery steel,ispat industries, IFCI and nandan exim
PRANAV SANGHAVI answers, I would not invest in these stocks are they are volatile and look to be operator driven.
Pranav asked, At what level can we buy Educomp and Everon?
PRANAV SANGHAVI answers, Educomp has surprised me at its meteorical rise in the stock price. I would be carefull investing at such high levels.
vishar asked, Hi Pranav, I have purchased RPL @ 162 kindly suggest that for how long should i keep it in hold so that i can get profits. Thanks, Vishar
PRANAV SANGHAVI answers, See the commercial production will be in place only by mid 2009 or early 2010. So till then don't expect any major jump. But once the production starts or if there is any further news then you could see the stock moving up.
arvish asked, Hi Pranav, Kindly suggest about RNRL, RPL or NTPC for better profits Arvish
PRANAV SANGHAVI answers, at 2008-02-22 15:58:33Hi Arvish, RPL and NTPC are excellent bets for the long term from the current levels. Look at them with a 6 to 12 month outlook. RNRL I would wait for the outcome of its court battle with RIL.
reddy asked, I have 500 - GMR Infra @ 170 and 500 - Petronet @ 70 can you please suggest me how long can i hold them for long and short term?? and also wanna invest in some more can you suggest me what to buy? ICICI, Dena Bank, Rcom, Tata Motors??
PRANAV SANGHAVI answers, You can surely hold on to both of them. You will surely see profits and new highs on the stocks in the future. I like the banking sector, stocks like ICICI, SBI, HDFC, Dena, Cent BOP, IOB, all look good. Tata Motors would need to be a 1 to 2 year play.
MachiReddy asked, pranav sir, I have 1000 shares of 'Networth'@210/-. what should i do? book losses? or wait? how long? can i get that price again? please do guide me!!
PRANAV SANGHAVI answers, I don't follow that stock so will not be able to help you.
jkl asked, I have bought Maruti @ 1021, ABB @ 1550, Dr Reddys @ 707 considering that they are good value companies but since then they have been sliding. Have I bought it at high price any chances of these companies showing the same value in future.
PRANAV SANGHAVI answers, Yes you could surely hold on to them. All are fundamentally strong companies and can surely be held with a medium to long term outlook. They have got beaten down in the recent correction but I am pretty confident they should bounce back over the next two quarters to give you profits.
deep asked, Whatever you buy today is available at a lower price afterwards.What to do ?
PRANAV SANGHAVI answers, Currently the markets are pretty volatile, so trading would be unadvisable. As I have mentioned in the past, I would recommend you to buy in small parts on every major dip that our index witnessess. Buy quality frontline stocks like L&T, SBI, RIL etc with a 6 to 12 months outlook.
rameshr asked, how is geojit securities and gmr infra?
PRANAV SANGHAVI answers, Geojit has made an application for approval for ABN to take a stake in the company. If that comes through the stock could see new highs. Currently because of the correction most of the Brokerage stocks are a bit laggard. GMR again is a long term bet. It has various projects on stream and as they get completed and profits get booked the stock will see some movement. Currently it is trading at extremely high PE multiple but not without reason.
deep asked, Any two banking stocks with lower downside & big potential.
PRANAV SANGHAVI answers, I like SBI and Dena Bank.
linda asked, Hi Pranav What levels will reliance energy take
PRANAV SANGHAVI answers, If the Bonus is approved for the public shareholders only then it could benefit the stock in the very short term. But eventually the stock will find its true value till as such time it has a couple of power plants up and running and generating revenues.
Pranav asked, I have purchased GAIL (@ 387) and Reliance (@ 2425) today. What is the future of these stocks?
PRANAV SANGHAVI answers, Both are strong stocks fundamentally. RIL being the more volatile one could have larger movements but should move up with the index being.
mahesh asked, can i buy tvs motors
PRANAV SANGHAVI answers, With the talks of interest coming down the two wheeler sector could surely benefit form the same. But in the two wheeler segment it is up against the toughest competitors in the face of Bajaj and Hero Honda. So I would stay with the frontrunners than TVS.
venkatesh asked, I feel to invest in shares, but Iam new to share investments. and I feel to invest bulk about 50,000. Kindly advise me when and what share to invest
PRANAV SANGHAVI answers, I would recommend you speak to a MF advisor and invest into Mutual Funds as you are new to the markets and only could burn fingers if you try to invest currently.
urvi asked, hello
PRANAV SANGHAVI answers, Hello Urvi and what is your query?
prasad asked, what is your take on L&T and BHEL with a 3-5 years perspective.....
PRANAV SANGHAVI answers, I think they will outperform the index by a margin. They are growing at a very handsome rate and also have a huge order book. with the increase in the infrastructure speding by private an government sector both these companies should benefit immensely.
Rajeev asked, Hi Pranav, can i buy more of suzlon for the long term?
PRANAV SANGHAVI answers, Hi Rajeev, Suzlon has corrected very sharply over the past couple of months. I would look at it with a long term outlook. The management was pretty confident of delivering the promised growth over the next few quarters during the December quarter results investor meet.
syed asked, what is is prospect for indian hotel and LT
PRANAV SANGHAVI answers, I like both the stocks. I think Indian Hotel is grossly undervalued just going by its balance sheet and its assets. L&T I have already spoken before, I am very bullish on the stock.
deep asked, Sir,pl rate the following wrt risk reward -gmr,JP Associates,Punj Lloyd
PRANAV SANGHAVI answers, I would put Punj LLoyd GMR and JP in that order of preferrence.
rama asked, Hi Mr Sanghavi Is this the right time to go into the market if yes which shares should i bbok first, I am looking for GMR, Ispat Industries, Kaashyap, E.com,IDfc Kindly suggest
PRANAV SANGHAVI answers, I like GMR and IDFC from the stocks you have mentioned. I would hold on to these stocks.
raju asked, can i buy powergrid, crompton greaves and ABB
PRANAV SANGHAVI answers, Yes with a 6 to 12 month outlook.
ankesh jain asked, At what level should we buy infosys
PRANAV SANGHAVI answers, Currently you could look at it with a short term outlook. In the long term outlook it does not look very attractive even though in dollar terms they will grow at over 25%.
raj asked, Hi pranav. I have the following shares in my portfolio - Adlabs 20 @ 960 , Mundra port 10 @ 790 , UNitesh 20 @ 375 , DLF 20 @ 770 , Rcom 20 @ 590 , Rolta 10 @ 255 . KIndly adv on the current stocks and stocks that i can include in my portfolio . Thanks.
PRANAV SANGHAVI answers, I like Adlabs, Unitech, DLF, Rcom from the stocks you have mentioned. I would surely hold on to them. You could look at some banks, and infrastructure stocks.
roh asked, How does DLF looks in 2/3 years period. I have 100 shares @ RS 1050
PRANAV SANGHAVI answers, I think you could see over a 100% return over a 3 year period provided our economy grows at over 6 to 7% per annum.
curious asked, can i buy Petronet LNG for 2/3 years at the current levels?
PRANAV SANGHAVI answers, You could look at it with that time frame.
harmith asked, today i applied for REC whats ur view
PRANAV SANGHAVI answers, It looks to be fairly priced considering the current scenario in the primary market.
Chethan asked, HI Sir, i have 100 No's KOTAK Bank @ 845....please suggest me whether i should keep them for long or short term?
PRANAV SANGHAVI answers, keep them with a long term outlook.
Mishal asked, Dear Mr. Sanghavi, I have Bharti at Rs.837 and Mukund at Rs. 141 . Should I keep these stocks. If yes till what time and what levels will I need to exit?
PRANAV SANGHAVI answers, Yes you could hold on Bharti surely. Mukind you could swith to a better steel stock.
ankesh jain asked, i have bought rajesh exports at rs.900.It was split and nw it is trading at 130.what is the right time to book my profit
PRANAV SANGHAVI answers, You could wiat for the March end results to be announce in April before booking some profits.
kedar asked, hi pranav...what u say abt market trend..as most people are saying that sensex can touch 15000 soon..what u say??? my most of funds are blockde in the midcaps, i've somewhat reserve fund, whare shud i invest at lower level?what will be the bottom level of market????
PRANAV SANGHAVI answers, In my past few chats I have maintained that the markets still look weak an a small correction could be witnessed by the markets. It could also test the recent lows of the markets before it moves up again. So one must invest carefully in the current market scenario. No one can predict a bottom or top for that matter for the markets.
nagender asked, Hi I have Gujarat NRE 20@165 is it good to hold or sell it off? please advise
PRANAV SANGHAVI answers, Definately a hold.
sunny asked, whats the future of GTL & GTL Infra?
PRANAV SANGHAVI answers, Going by the past, I would not look at the stocks.
raju asked, good afternoon pranav, I am a small investor want to invest 20,000. kindly guide me which stock i should purchase for long term horizon say about 3 years.hope u answer my quiry.thanks
PRANAV SANGHAVI answers, I have mentioned quite a few stocks in my earlier replies, please do refer. Thank you.
ramkumar asked, what is the future of bongaigon refineries. I have got 200 shares at 102. should i accumulate at this level or should i book loss. Thanks
PRANAV SANGHAVI answers, I think you could hold on with a 3 to 6 month outlook.
prasad asked, Hi Pranav.... Can i buy Siemens Ltd. with a 5 years perspective....
PRANAV SANGHAVI answers, Yes you can. Being a heavy engineering sector company, it is a infrastructure and power related stock and both sectors should perform well.
ramkumar asked, Hi Sir, I have Bharti Shipyard 50 at 802. Should i book loss or wait
PRANAV SANGHAVI answers, You may have to wait for some time before you see profits. If you have an immediate alternate investment opportunity you could book a loss otherwise hold on.
pravin asked, pravin-dear sanghvi sir,i hv recently purchase adlabflim@1159(15nos),Jkumar@110/-(162),laninfra@459/-(10),aarti indus@45.56(200),HDIL@500(23),AS PER MARKET POSSITION WHAT SHOULD I DO ,SHOULD HOLD THIS ALL SHARES?? PLS.EXPLAIN
PRANAV SANGHAVI answers, I would use the rallies to get out weaker stocks and dips to get into quality frontline stocks.
PRPANDE asked, Sir, What do u think ,Cent Bank Of Punjab, Ispat Industries,Power Grid& HCC. What is the future for these Companies shares , Please guide to me for purchase shares.
PRANAV SANGHAVI answers, I like Cent BOP, Power Grid and HCC. You could hold them for 6 to 12 months for a 20 to 25% gain from current levels.
SAMAR asked, Hi Pranav , what will be the impact of reliance infratel ipo on reliance communication share.. how do you rate that upcoming ipo
PRANAV SANGHAVI answers, I am sure with the outcome of the Rel Power issue they will postpone the IPO for some time.
ameetljain asked, i am a small investor with about a lakh Rs invested in 6 diffrent stocks with a loss of about 20 thousand. what should i do
PRANAV SANGHAVI answers, You will have to hold on. As the loss will be booked only once you sell.
ruvali asked, hi pranav ..... greetings . wt is ur call on BIrla Corporation
PRANAV SANGHAVI answers, I think it is a good mid cap stock to pick with a 6 month outlook.
ramkumar asked, Dear Sir, I am holding 30 L&T at 4099. What do you feel about this. Should i hold on?
PRANAV SANGHAVI answers, I think you have purchased at a bit higher rates but you could buy more at lower levels to avergae out. You will surely make profits in the stock over 6 to q2 months period.
yandra asked, I have 125 IFCI shares @81, what is the future of the stock
PRANAV SANGHAVI answers, IFCI's outcome will depend on what the plan to do with their disinvestment plans. If they do get in a strong partner with some sort of management say then the stock could see the old highs. Otherwise it could move in a range bound fashion.
Neeraj asked, WHAT IS THE TARGET OF DENA BANK IN SHORT TERM
PRANAV SANGHAVI answers, I would look at a price of 85 to 90 on the stock in 6 months.
Rajagopal asked, Hi Sanghviji, Please advice me what is the future of edelwise capital I have purchase 15 share for Rs. 1550/- per share. REgds Rajagopal
PRANAV SANGHAVI answers, you have bought at pretty high rates. Currently it is substantially down from those levels. You will have to hold on for atleast 6 months to a year to see profits.
niil asked, should i purchase of rel pow at the current lavel
PRANAV SANGHAVI answers, I would not look at it at current levels. I would wait for lower prices.
Jats asked, I have 20 Jai Corp @ 1200. Do you recommend a hold or sell ?
PRANAV SANGHAVI answers, I think you could continue to hold on to the stock.
deep asked, Sir,I have some Rel Capital,Adlabs.One day they seem to be full strength & next day 5-7 % down.What should I do I have a 1-2 years view.
PRANAV SANGHAVI answers, With a 1 to 2 year outlook you will see decent returns on the stocks. So don't look at it on a daily basis but with a long term perspective.
m asked, Hi Sir, Ihave 300 NTPC @204 , 300Exide Ind @81and 400 GSPL @75 . what is the future of these stock. i have 3 months .
PRANAV SANGHAVI answers, You can hold on to all the three. You should see decent profits over that time frame.
unni asked, hi,i am new to stock market,is this the right time to enter or should i wait.
PRANAV SANGHAVI answers, Currently our markets are following the trends in the global markets. They are in a volatile stage and I even feel there could be one more correction before the markets stabilize and move up eventually. So I would wait and watch.
riyas asked, Hi Pranav, What kind of impact we can expect during the budget on 28th Feb in Stock market. Are we expecting any further down in the stock index during the budget. Please advice?. Thanks
PRANAV SANGHAVI answers, I dont' think the budget will give any great boost to the market sentiment.
chougule asked, what are the feature prospectus of the vediocon industries? i am holding 20 share @Rs658.00 i am long term invester
PRANAV SANGHAVI answers, In the long term you should see new highs on the stock. They have undertaken a lot of expansion plans which will bear fruit in the future.
Dharmendar asked, I hold Bongaigoan at 100, CBOP at 52, Subex at 352, RNRL at 246 and TTML at 37.. Can u suggest that these stocks will give good returns
PRANAV SANGHAVI answers, Hold on to Bongaigon and CBOP.
ManojGArg asked, Hello Sir, What are the prospects of Assam Company & Srnivasa Shipping & property Development?
PRANAV SANGHAVI answers, There is a lot of buzz about Assam company doing the rounds, so I would hold on to the stock. The company I don't follow so I won't be able to help you sorry.
tstuser asked, what is your view on allahabad bank
PRANAV SANGHAVI answers, I like the stock and you could look at it even for 3 months to a 12 month period.
Kaushik asked, Hi Pranav, I have got 200 shares of dish tv @ 94....Should I hold or sell it?
PRANAV SANGHAVI answers, Yes you could hold on to the stock.
ahmad asked, i have 200 shares of chennai petroleum can i hold them or sell them
PRANAV SANGHAVI answers, Hold them.
niil asked, Dear sir i purchase sheeyas shipping @144/per share,all brokre hose given good sign in future totay this one at @74/per share,should i exit or hold? pls suggest.
PRANAV SANGHAVI answers, You could hold on to the stock as the shipping sector will perform well over the next couple of quarters.
Ali asked, Hi Sir! I got 7 UTV software @ 843, 15 Punjlloyd @ 384 and 30 Core Projects @ 212... What is the future of these scrips? Whether I should sell them when the market goes up or hold long-term for better gains?
PRANAV SANGHAVI answers, You could surely hold on to UTV, PunjLLyoyd. Both should give you good returns in the long term.
riyas asked, As a i new invester, can i stay away from the stock market as of now due to high volatility and come back to it once it is more stable? Thanks
PRANAV SANGHAVI answers, Yes it is advisable. You could though, invest on strong correction days when markets are down by 2 to 3%. Pick up quality frontline stocks in small parts and sit on them for 6 to 12 months.
rashmi asked, hello, i have a sum of rs. 25000 to invest in share market fr 6 months... can i enter into balrampur chini n rolta ?????
PRANAV SANGHAVI answers, I would rather invest in quality frontline stocks than the sugar sector. Rolta also is a mid-cap stock.
manish asked, hi sir! i have 1000 shares of jct @13 now what to do.
PRANAV SANGHAVI answers, Hold on as they are supposed to have some decent land assets which could yeild some returns in the future.
sbanthia asked, hey pranav did u saw the news on mark faber where he says that index can fall to 14000 first and then to 12000 . do u feel we can see such levels and how much do u see mark faber as an investor guru
PRANAV SANGHAVI answers, He always comes up with extremely negative views. Although I do agree that the FII's are the main drivers of our markets and not retial players. But I still feel touching 12000 levels from here looks difficult for me. We could test the recent lows we saw in the month of January but beyond that our economy is growing at over 3.5% net of inflation as compared to US which is growing only at 0.5%. China and India are surely growing at handsome rates and eventually smart money will get into these regions for better returns.
PRANAV SANGHAVI says, Well it has been great chatting with you all. Have a good evening and a better weekend. See you all next week. Bye for now.
Chat with Pranav every Wednesday, 4 pm
(Due to circumstances beyond our control, date and time of chat may change)
