March 13, 2008
The markets remained volatile the first two days of the week. However, on Wednesday it has traded in the positive region from the start of the trading hour.
Will the Sensex move up from this point? Or is the Sensex likely to see further correction? 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 on Wednesday market expert Pranav Sanghavi replied to many such readers' queries: Here's the transcript:
PRANAV SANGHAVI says, Good afternoon. Hello and welcome to the chat. Let's begin.
surya asked, Hi sir, I had UNITECH at 380.can i hold or sell?
PRANAV SANGHAVI answers, at 2008-03-12 15:57:25Unitech is a fundamentally strong company. The current market scenariop is weak so in the short term it will be difficult for you to see your price but eventually I am pretty confident in 6 months or so you should see profit.
kapilsingh asked, hi pranva, i have 300 shares of RNRL at 170 rs. should i hold it or move to some other stocks. thanking u in advance. pls also suggest me about RPL
PRANAV SANGHAVI answers, In this current scenario I would not hold on to trader friendly stocks like RNRL. They run up also fast and fall as quickly. RPL would be a better bet but with a long term view and not for short term investing.
Rajesh asked, Hi, Is this the right time to buy JaiPrakash Associates [Get Quote]? Please advise.
PRANAV SANGHAVI answers, JP Assoc has been inducted to the Nifty so the stock has seem some movement over the last couple of sessions. I would not look at JP currently.
Sameer asked, Hi Pranav, Is this a good time to enter the market. I want o invest with a 6-8 month time frame
PRANAV SANGHAVI answers, I would sya yes if you look at investing with a 1 to 2 year time horizon. Like I have been sayin in my previous chats, I recommend that you buy quality stocks in parts on every major dip of over 4-500 points on the SENSEX.
kbee asked, what is prospect of Berger Paints?
PRANAV SANGHAVI answers, It is a leading player in the paints sector and I would surely hold on to the stock.
AVEEN asked, HI SIR I HAD ISPAT INDUSTRIES [Get Quote] AT 71. SHOULD I HOLD OR SELL IT.
PRANAV SANGHAVI answers, You have got in to a liquid F&O stock at close to it's highest levels. I would much rather look at SAIL [Get Quote]. You will have to wait a while before you see your price.
VK asked, Dear Sir, I bought 20 Siemens Shares for Rs.731.50/- each. Also bought 20 RNRL shares for Rs. 108/- each and another 20 RNRL shares for Rs. 100.90/- each. How long should I hold these shares?
PRANAV SANGHAVI answers, You can surely continue holding on to Siemens. I think they will beat market expectations in their results for the quarter ended March 2008.
Pankaj asked, I have Kaaveri Seeds ? Should I hold
PRANAV SANGHAVI answers, I am sorry, I don't follow the stock.
dsafasf asked, Im having suzlon 25 @ 257,RNRL 50@ 126,JP Assoc 25@ 247,Ashok Leyland [Get Quote] 130 @37,Arvind Mills [Get Quote] 35@ 51.Shall i hold these stocks.Iam a long term investor in the range of 2-3 yrs or more.I am planning to buy GMR Infra,RPL,Unitech,PunjLLoyd for long term in the range of 2-3 yrs.let me know these are good stocks. Suggest some good stocks for long term ie minimum of 3 yrs
PRANAV SANGHAVI answers, What I would recommend strongly is to put in a couple of banks like SBI [Get Quote] & ICICI, engineering stocks like L&T, some other quality stocks on to your portfolio with you rtime frame in mind. THe stocks you are currently invested are more for short term investing than long term.
surya asked, HI sir how ru? i HAVE Gujarat NRE Coke Ltd [Get Quote]. 200@155 ...GVK Power & Infrastructure Ltd. 300@42 AND UNITECH 225@380. CAN I HOLD ALL THESE OR SELL?
PRANAV SANGHAVI answers, Yes you can surely hold all three. You have made a good choice for scrips but at higher prices. You will surely see profit in the future.
dfsadfsf asked, have 100 dlf @684...shd i sell?
PRANAV SANGHAVI answers, NO. Definately hold on.
atufa asked, hi!i'm having 50 rel comm @ 172.00,shall i book loss or hold?
PRANAV SANGHAVI answers, Book profit you mean? But no, hold on.
Sathu asked, Hi Mr. Pranav, We started investing in stocks from this year. We have 15 shares of Reliance Communications [Get Quote], 16 shares of Reliance Power [IPO], 10 shares of Maruti [Get Quote] Suzuki and 3 shares of JP Associates.[@ a total cost basis of 26,000] - Planning to hold on for 1 -2 years -Can we hold these?
PRANAV SANGHAVI answers, I would rather that you switch to growth stocks like SBI, L&T, ICICI, IDFC [Get Quote], NTPC etc. RCom is fine. Maruti is more a interest rate sensitive stock.
1234 asked, i have adlabs@760 gmr@175 Power grid@90 maars email@example.com and Sal Steel@30. Please let me know on how to proceed
PRANAV SANGHAVI answers, You could surely hold on to Adlabs [Get Quote], GMR and Power grid. You could switch the other two stocks to better quality frontline stocks.
svs_santosh asked, Hi Sir, I have 1023 Geojit shares @ 118/- Pls advice me on whether I should hold it or exit it. I can hold till 1-2 years, if requried.
PRANAV SANGHAVI answers, They have performed well when the markets have done well. We will have to see how they perform this year when the marekt has witnessed 3 sharp corrections. If they continue their growth then you can surely hold on.
Tanya asked, I have 210 IRB@185 , 110 RPL@165 ,1000 DCW@48. What shall i do
PRANAV SANGHAVI answers, IRB and RPL you could hold on if you are a long term investor. DCW is a regional Soda Ash, PVC player. They also manufacture gas cylinders. I don't foresee them growing at over 20 to 30% per annum. So you could swith once you are in profits. You will have to wait for a while for the same.
vikas asked, HEllo Sir i am having indiabuls financial 15@510,RCOM 15@60,jai corp 5@1300,RNRL 50@89,nocil 50@64,BHEL 6@2100,Suzlon [Get Quote] firstname.lastname@example.org shuld i do which one i need to sell and which i shuld hold.I can hold atleast for 6 months.Second thing which other stock i shuld purchase for 1 year prospective in 20000rs.
PRANAV SANGHAVI answers, Indiabulls [Get Quote], RCom, JaiCorp, Bhel, and Suzlon could surely be held on to.
Deepak asked, ifci hold yes -no
PRANAV SANGHAVI answers, Its a trading stock currently and very little going for it fundamentally. If it's stake sale is finalised and the full amount allocated in the budget is received then the stock could see higher prices. Otherwise it would remain range bound.
mohit asked, hi im having 100 ntpc @188,rpl 100@163,450 ispat on average @40,ifci 100 @63,r power 90 on 430 ansal infra 14 @169 . i have a tenure of 1 yrs so wat can i expect from them which shares should not be in this portfolio
PRANAV SANGHAVI answers, You could surely hold on to NTPC, Ansal. The other stocks you mention are F&O traders stocks with high betas and move in tandem with the market only a bit accelerated. So you should rather switch to frontline growth stocks.
Debasish asked, Hello Sir Please tell me I have 23 croporation Bank @ Rs 329 now it is 265 shall I hold??
PRANAV SANGHAVI answers, Yes despite teh recent negative news about the banking sector, I am still bullish on the PSU banks. I would use this opportunity to accumalate the PSU banks on every dip.
kk asked, Your View on Alp Ind(54),Ashapura Minechem [Get Quote](280),DC holdings(200),Supreme Ind(250),??hold?? or ??average?? or SELL???
PRANAV SANGHAVI answers, Supreme Industries [Get Quote] could be held on to. They are a steady performer. But you have got in at higher levels. So you would have to wait for a longer time as most midcap stocks take that much more time to come up. The others I don't follow so I will not be able to help you.
pankaj_76 asked, Hi Pranav, i have 600 shares of IDBI at Rs 111 ,what should i do ,should i wait for 5to 6 months and what should be exit rate
PRANAV SANGHAVI answers, Yes you can surely hold on to IDBI.
deepakkundnani asked, Hi!!! Reliance Petroleum [Get Quote] @ 170/- should hold or sell??
PRANAV SANGHAVI answers, You have got in at the higher end. If you can hold on for another year you should see profits.
amya asked, Hello,what can we expect from ispat with 1 year time frame?
PRANAV SANGHAVI answers, Not much. Unless the management decides to pump in huge amounts of money into he company I don't see much future. I would rather look at SAIL and TISCO [Get Quote].
ramhari asked, i want to invest rs 50000\- now for 1 year, which one i should buy
PRANAV SANGHAVI answers, Look at L&T, SBI, DLF, NTPC, IDFC etc.
asd asked, When do you see the next buul run
PRANAV SANGHAVI answers, I think this time around the markets will take that much more time to consolidate and ride back up. We have hardly every been in a bearish phase over the last 3 to 4 years. So even if we take 4 to 5 months to get bak to a bullish phase it is fine and only healthy for the markets.
akshaya asked, what about ranbaxy
PRANAV SANGHAVI answers, Ranbaxy [Get Quote] is a pharma player and the whole sector has underperformed the markets all of last year when we saw phenominal highs for the market. This year doesn't look different for the pharma sector.
email@example.com asked, Hi, I am accumulating below mentioned stocks on every dips. So far invested 20 Lacs and have an appetite to invest 10-15 lacs more. I am oure long term investor and have not intention to sell these stocks if they are really good business. Let me know if my plan is incorrect. stocks I have are BHARAT BIJLEE [Get Quote], BHARTI AIRTEL [Get Quote], BHEL, CONTAINER CORP, CORPORATION BANK [Get Quote], DLF LTD, EDELWEISS CAPITAL, ICICI, INFOSYS [Get Quote], L&T, NTPC, RELIANCE INDUSTRIES [Get Quote], RPL, SBI BANK, SIEMENS, TCS [Get Quote]
PRANAV SANGHAVI answers, I think you have made an excellent decision both in terms of way of investing and also in terms of the scrips you have chosen. I think in a couple of years you will have a whopping return on your investments.
venkat asked, Hi, i have SpiceTELE shares @ 34.40. should i hold are sell. what is the future of this company?
PRANAV SANGHAVI answers, The telecom sector is still growing at a decent rate. Spice is a prime acquisition targer for new license holders to gain market share. So if there is any M&A news on the stock it could jump. Besides that it would move in tandem with the markets.
akshaya asked, y r u taking so much of time
PRANAV SANGHAVI answers, I am sorry there are tons of questions posed and I am just answering them chronologically.
jitendra asked, i have 50 shares of SBI @1885...what shud i do?
PRANAV SANGHAVI answers, Surely hold on. If you want a risk free arbitrage opportunity, sell 10 shares on the last day of the record date of the Rights issue and tranfer the share sold only on the next day. You should make a decent spread on the shares sold an the rights issue price.
pankaj_76 asked, I have 329 shares of powerfrid at Rs 67 ,what should i do ,what should be exit rate
PRANAV SANGHAVI answers, Surely hold on to the stock.
prafull asked, Sir my question is that i got 20 shares of DLF @525. should i hold it or sell it now. what is future prospects of this company.
PRANAV SANGHAVI answers, Surely hold on. THey are delivering profit margins of over 40% on their turnover which not many companies can boast. They have given stellar performance over the last few quarters and I think they should continue doing so.
arunesh asked, i have 12000 shares of paras petro @3.7 700 hfcl @39 and 450 ifci @ 64 please advice me
PRANAV SANGHAVI answers, I don't follow the first two stocks. Both are penny stocks and are extremely risky according to me. As for IFCI, I have given some replies in my earlier replies.
maverick asked, Kotak has multiple leverage to markets with both earnings (75% of Kotak's earnings is linked to capital market activity) and multiples, which are, dependent on the strength of the equity markets. Kotak is down 50% YTD. But even now it is trading at 25x F2009E earnings . is it expensive at 700 ??
PRANAV SANGHAVI answers, Most people find it expensive and thats why the stock has tanked. It is priced a bit on th ehigher side but Kotak has always got a premium to the market multiple for banks.
naveen asked, Hi Pranav,Good evening,is the pull back expected to sustain.Will the market test 12,500 - 14,000 levels? How are real estate stocks like Unitech,DLF,HDIL,IVRCL infra,IB real estate,RIIL expected to perform in the next 6 months..
PRANAV SANGHAVI answers, About 3 weeks back, I have maintained that the markets will test its January lows. It did so a couple of days back and bounced back up. If it breaks those levels then we could see a new low below the January lows. but 12,500 looks close to impossible. But you never know if elections are announced tomorrow, the market could panic, so nothing can be ruled out.
shekhar asked, is it ok buying UNITEC at this point of time??
PRANAV SANGHAVI answers, Buy on dips an correctional days an not on days when the markets are up.
mraj146 asked, HI Pranav....for the past 3 weeks i am posting my question. But i havent got any reply from u. Hope i may get some this timeee. I took.. Apollo hospitals [Get Quote], ashok leyland,FSL, TV Today, Central bank, gpil...when the sensex was at 21k in Jan. As everyone knows all are down. can you let me know the future of these stocks. Also do let me know about the future of these stocks. RPL, RPOWER,JP Associates,GMR INFRA,GPIL... any new good ipo's for the next quarter..???
PRANAV SANGHAVI answers, If you can hold on for 6 to 12 months you should see profits on most of your holdings. Currently the markets are a bit on the weak side.
maverick asked, Fed Lends $ 200 bn for 28 days against Fed Backed and Non Fed Backed AAA Securities.....Do you see market recovering from this news ?
PRANAV SANGHAVI answers, That amount is huge for the Indian markets but small in term of the size of the US mortgage markets. It will definately pump in much needed short term liquidity into the system but it won't solve all problems.
blackmoney asked, what do u think of riil ? i have 100 at 2100? should i buy more to average cost. i am a long temr investor with a 3 year horizon.
PRANAV SANGHAVI answers, It is a good price and you will surely see profits within 6 months itself. You could buy more and average you cost.
mahesh asked, Hi Pranav, I have stocks like RNRL,RPL,Idea,Adhunik metals,as all are down,what should I do sell it or retain it for next 6months.
PRANAV SANGHAVI answers, You will have to retain it to mitigate your losses.
firstname.lastname@example.org asked, Is Parekh Aluminix a good long term play (3-4 yrs)
PRANAV SANGHAVI answers, I would rather look at a Nalco, Balco or Sterlite.
rohit asked, is its rite time for investment or still more downside remain?
PRANAV SANGHAVI answers, As I said earlier if elections are announced for May '08 then we could see more downside in panic.
munira asked, wat abt L&T and IPL kindly tell me. I have L&T AND RPL BOTH..wat to do
PRANAV SANGHAVI answers, L&T is surely a hold. In fact on the day of the news received about its middle east susbidies losses, it looked like a good buy at 2600 levels.
shiv asked, HI What is the future of JP associates, NTPC, HDIL & Andhra Petro
PRANAV SANGHAVI answers, I would hold on to NTPC surely. HDIL, JP and Andhra you will have to hold for atleast 6 monthsto see some gains.
sampat asked, hi,I am sampat bought 100 shares of trf,100 shares of finantial technologies,50 shares of pratibha industries,what should i do?
PRANAV SANGHAVI answers, I would hold on to all the three. They are quality midcap stocks that you could surely hold on to.
ashunaveen asked, Hi Pranav - What are the prospects that you see for Bombay Dyeing [Get Quote] and Godrej Industries [Get Quote] with 6 - 12 months horizon
PRANAV SANGHAVI answers, Both are good and steady performers plus both have huge tracts of developable land within the Mumbai City limits. This land if developed could yeild substantial returns to the company.
Rajiv Sehgal asked, Dear Pranav, What is the future of Mosaer baer,its going very low. Any Reason? Shall we hold or sell. Rajev
PRANAV SANGHAVI answers, Yes you could hold on. It is one of the leading players in its sector and surely could be held on to. As most midcap stocks take time to rebound when the markets come up, you will have to wait that much longer for Moser Baer [Get Quote] to run up.
viru asked, is it good to hold on the powergrid stocks for long term
PRANAV SANGHAVI answers, Yes you could surely hold on with a long term perspective. India is a power hungry country and Power grid will only benefit form the same.
JaswinderSingh asked, i Buy already GTC at 350 wht should i do now
PRANAV SANGHAVI answers, You will have to hold on witha 6 to 12 month outlook.
sajid asked, Hi Pranav, I am in dubai, so how can i enter into stock market business by daily buying or selling, please guide me
PRANAV SANGHAVI answers, You would need to set up an account with either HDFC Bank [Get Quote] or ICICI bank [Get Quote]. They have special departments which handle PIO's and will get you all the necessary permissions and also provide with an internet based platform for you trade upon.
riyas asked, Hi pranav, can you give 5 good stocks that would return good earnings in 6 months timeframe. Thanks
PRANAV SANGHAVI answers, I would look at SBI, RIL, DLF, L&T, NTPC, IDFC and some more stocks.
email@example.com asked, I have 500 shares of GMR infra bought at 249, do you think I will get this price and when
PRANAV SANGHAVI answers, You have got in at close to its highs. You would have to wait atleast for a year to see decent profit. You could buy more at lower levels to average on days of corrections.
viksun asked, Hi Pranav! How do you rate Unitech, GMR Infra, Hotel Leela & TVS [Get Quote] motors at current levels with a medium to long term view?
PRANAV SANGHAVI answers, You can surely look at them with a medium to long term outlook. TVS is a rate sensitive stock as two wheelers are intrest rate dependent for their sales. In that sector you could look at Hero Honda an Bajaj Auto [Get Quote].
PRANAV SANGHAVI says, Well it's time for me to leave. Bye for now.
Chat with Pranav every Wednesday at 4 pm
(Due to circumstances beyond our control, date and time of chat may change)