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July 04, 2008 09:18 IST
Quite a contrast from the way the week started. After being majorly down for the past few trading sessions, the Sensex turned back on Wednesday and in the final trading hour is up over 600 points. The Sensex on Wednesday opened flat. Lost ground for some time but soon bounced back and started zooming. 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, director, Jitendra Harjivandas Securities (P) Ltd, replied to many such readers' queries.
Here is the transcript:
PRANAV SANGHAVI says, Good afternoon and welcome to the chat. Let's begin.
Suresh asked, hi Could you tel me which stocks to buy
PRANAV SANGHAVI answers, at 2008-07-02 15:59:30Today the markets were supposed to have a relief rall but have they rallied and what a relief! But everything cannot turn rosy over night so tread with caution. Only look at frontline index stocks with a 1 year outlook atleast ad that too on days when the markets are down.
jkl asked, jetking info, mtnl, jmc projects, gmdc, syndicate bank is it a good investment
PRANAV SANGHAVI answers, These mid cap stocks will take that much time to recover when the markets do bounce back. I ould rather stay with frontline index stocks that too buy in parts on every dip.
riyas asked, Hi pranav, I started to invest in the share market since jan 2008. Initially i had some fixed amount for investing, but since the share prices are falling out since january, i started to buy continuously on every dip. Now i invested around 3.5 lakhs. But the current value of all my shares are only 2.2 lakhs. I lost around 1.20 lakhs. The major lossese occured at SBI [Get Quote], DLF and Grasim [Get Quote]. I invested in canara bank, BHEL, SBI, Bajaj holding & finance, DLF, Unitech, TELCO, Reliance energy [Get Quote], RCOM, Jindal saw [Get Quote], Tata chemicals [Get Quote], GMR infra, Grasim, ICICI, HDIL, Suzlon [Get Quote], Pantaloon [Get Quote] retail and Ultr cement. Please advice me what shall i do now?. Do i need to buy for average?. If i holds the shares for 1 to 2 years, can i get profit for the shares i invested. Thanks a lot.
PRANAV SANGHAVI answers, If you continue to hold for another 6 monts to 1 year, I am pretty sure you should see a reasonable profit on your investment. Do not panic and sell.
SACHIN asked, PLS TELL ABT GUJNRECOKE
PRANAV SANGHAVI answers, I think it is a good long term bet. It coal is in demand and also planning to invest into the power sector. I would surely hold on again with a 1 year outlook atleast.
Suresh asked, I buyed the jpHydro shares 1000 at 75, How much time it will take to come normal price
PRANAV SANGHAVI answers, JP Hydro is a typical trader friendly stock which moves up quickly on bullish markets and moves down equally quickly in falling markets. I think you will have to wait for some time before you can see the price go up.
khan asked, Hi, How will we know whether the worst of the market is over before we start investing? For example: in the current market scenario, how do we know whether the market is fully recovered from inflation, subprime mortgage in US and other issues. Can Any signs or indications be found easily?
PRANAV SANGHAVI answers, I think aout 90% of the worst part of the donturn looks to bever. Although there could be one more news based correction before the markets stabilize. All factors affecting the markets are sill negtive and not turnd poitiveovernight. So one us not get carried away by todays massive rally.
gt asked, wht is the right time to buy Indiabulls [Get Quote] Fin, BHEL and petronet LNG?
PRANAV SANGHAVI answers, You could have looked t HEL blow 1400. In the financial sector I would wait fr a while before jumping in. THe next two quarter results would be a good indicator.
navigator asked, hi which stocks rae good for short term (short profits are ok) i have dlf@Rs478 should i hold them? what abt HDFC [Get Quote]@Rs1000?
PRANAV SANGHAVI answers, I like SBI, RIL [Get Quote], L&T, IDFC [Get Quote], NTPC etc for the short term say 3 to 6 months term. Both HDFC and DLF can surely be held.
Pakkiri asked, I am holding SBI, RPL, BHEL etc (I am down almost 52%). I would like to add some penny stocks to my portfolio. What would be your advice? What is your say on Facor Alloys [Get Quote] and GV Films?
PRANAV SANGHAVI answers, I would surely not recommend to sell frontline stocks like SBI and BHEL at this juncture. If you hold on for 3 to 6 months you should srley see higher prices. Beyond a point the valutions will surel getcompelling for long term investors. Unfortunately, I do not follow pnny tocks so will not be able to help you.
RR asked, Hi, Can i buy titan industries at CMP? Will there be more downside for this share in the coming weeks? Thanks.
PRANAV SANGHAVI answers, You could look at Titan but with a long term outlook. I don't think there is any major down turn in the market beyond a minor correction from this point. Unless some majo fact liesay the government breaks down and elections are annouced.
RR asked, Hi, If i buy L&T and Sesa goa [Get Quote] shares, shall i eligible for the bonus share? thanks
PRANAV SANGHAVI answers, If you buy them and have the demat shares deposited in to your demat account before the record date then you shall receive the bonus shares.
joy asked, HI, Can u please suggest for stocks DLF,Unitech,IFCI,UCO bank [Get Quote], SPicejet.Can I go ahead and buy them or should I wait for the market to go down
PRANAV SANGHAVI answers, I would look at DLF, Unitech from the stocks you have mentioned. Buy only on dips and not on rallies like today.
bala asked, Can you tell me what is the difference between growth stocks and value stocks?
PRANAV SANGHAVI answers, Growth stocks are essentially stocks which areperceived to grow their profits on a regular basis at a high percentage. Value stocks are essentially stocks which are quoting below the industry or markets average PE.
aruna asked, i have rpower@216 and L&t@2568 shall i hold or sell? i want to invest 1 lakh.in which shares shall i invest now
PRANAV SANGHAVI answers, I am not too sure of RPower but L&T you can surely hold onto. I would only look at Index stocks at this juncture and that too on dips and in parts.
sami asked, Hi Pranav, What is your take on Hind. zinc, Great eastern shipping, Dena bank [Get Quote]. shall i buy at cmp and hold it for 1 year.?
PRANAV SANGHAVI answers, You could surely look at this stocks. Although Hind Zinc being a metal commodity stock you will have to follow the world metal prices regularly. GE Shipping also could be looked at with a 1 year outlook as they look to deliver a decent growth both in profits and turnover. Instead of a Dena Bank I would look at SBI, HDFC Bank or ICICI bank [Get Quote].
dalal asked, I have Praj Ind, Powergrid,NTPC,RajeshExports,All Reliance Group Co's, T.Steel,T.Motors,TCS [Get Quote],T.Tel M,AbanOffhsore,Unitec,DLF,HDIL, Jai.Asso.Asian Eletronics,Walchand.Indsutries, ICICIBNK,HDFC,IFCI,IDBI,IDFC,Voltas [Get Quote],SesaGoa,IndianHotel,Please advance these co's are good
PRANAV SANGHAVI answers, I think you have a fantastic mix of stocks and I would surely hold on to all the stocks you have mentoned albiet with an outlook of 1 to 2 years.
Nitinw asked, HELL0 SIR. L&T, BHEL, SESA GOA CAN WE BUY AT CURRENT LEVELS?
PRANAV SANGHAVI answers, If you have a 3 to 6 month outlook you could surely look at them but in parts and on every dip.
Vel asked, Hi Pranav, Are we expecting more downside in the reality sector in the future. I would like to buy DLF, unitec, HDIL shares for the 2 years outlook. Can i buy now at CMP. Thanks.
PRANAV SANGHAVI answers, I would wait for a while before buying into the stocks. Wait for their June quarter results before entering the same. If you see any sign of slow down in profits then you could see lower levels.
ksash asked, Can i average Reliance comm at current price. I hold 25@650.
PRANAV SANGHAVI answers, If the markets fall further RComm would surely fall further. So I would wat before averaging the stock.
Gaurav1 asked, Hi i am planning to purchase the bank shares like Uco,bank of maharashtra as the market is low, is it the right move
PRANAV SANGHAVI answers, I would not jump in to buy 2nd tier bank stocks at the current juncture. The inflaton is still high and there fore interest rates could be hiked marginally. In that scenario the banks would find it that much more difficult to maintain their NIMs. Even the recnt CRR hike will affect thier sort term performance.
ranjita asked, How technical analysis important/On TV show if stock is up they say buy/Nowdays they say sell everything.
PRANAV SANGHAVI answers, I didnt follow your question? If you mean whether technical analysis is important, then it is part of predicting how the markets and stocks prices will move. THere are two ways of studying the stocks and markets. THe fundamental way and the technical way. Both provide insight into the markets in their own way.
sunil asked, hello sir I am in new commer in share market please say me which stock is buy for best refund in 3 months I ready to invest upto 30000/-
PRANAV SANGHAVI answers, You should only look at frontline index heavy stocks.
raaavirk asked, Hi I have GMR and Unitech can I hold them
PRANAV SANGHAVI answers, With a long term outlook you can surely hold on to them.
Kanty asked, Do you think 13000 is the bottom index for sensex?
PRANAV SANGHAVI answers, It could break that and say go closer to 12,500 or even 12000 once. But you owuld see a sharp value buying rally like the one today soon after it touched those levels.
ShaktiSinha asked, Hello Pranav, your advice have been helping a lot! I have GMR Infra @ 110. What would be your advice on this counter?
PRANAV SANGHAVI answers, You would have to wait for a while to see that rate as essentially most of GMR's projects are executed over 2 to 4 year periods and therefor take time to realise the profits. Its PE ratio also at 110 was extremely high but its price is based on perceived future value. ND asked, GREMACH, GWALIOR CHEM, SUBEX, MERCATOR, NAVIN FLUORINE, NO REPLY for the last 4 sessions
PRANAV SANGHAVI answers, Gremach and Mercator are stocks which I occassionally look at but I don't follow the other stocks. You could hold on to Gremach an Mercator but it will take some time for them to move up.
jaydeep asked, hi pranav thanks in advance ...i have invested around 4 lkhas in diff companies like RIL 30 @ 2400, l&T 32 @ 2600, Rpl 350 @ 182,Rcom 40 @ 550, rcapital 15 @ 1400, suzlon 70 @ 265 , Crain india 30 @ 280, Itc 35 @ 195 Dlf 10 @ 550 is it good to hold them or which one i should short the position and change to anothe one ...one more thing is it good to have around 25-30 % of portfolio containig one company as RIL, L&T and RPl contianes almost 75-80% of my portfolio? Thanks again hope you will reply
PRANAV SANGHAVI answers, You do have a decent mix of stocks. Most of the rates are a bit high. You would need to hold on for 6 to 12 months. I would not suggest shorting the markets at current levels. I would rather patiently hold on as you are holding quality stocks.
azhar asked, hello pranav how are you pls advice me about ongc
PRANAV SANGHAVI answers, Despite bearing a large amount of the Oil susbidy for the governmet the stck should do well if the Oil prices keep rising. ONGC's [Get Quote] prices will depend on the movement of the crude prices and our governments policies in terms of fuel prices and policies related to the same.
viju asked, WANT TO BUY L&T(BONUS DATE IS WHEN) AND CHAMBAL. IS IT OK
PRANAV SANGHAVI answers, I am not too sure about Chambal but L&T you could surely look at.
Kanishka asked, hello sir, I'm a long term investor and bought 50 shares od RPl @ 204. Whats the future of the share...will it o beyond that price. Pls let me know.
PRANAV SANGHAVI answers, The commercial production of the company is expected to begin in December this year. I think the prices would rise once the commercial production begins.
parag asked, Hi Pranav, I have L&T, IDFC,Rpower, RelPet and all are at 35- 40 % loss? I am sure you will help in these Qs 1. Should I invest more in the same stocks and cover up the losses (so that the value is break-even) OR 2.Should I invest in other stocks such as Banking/Oil/IT/Cons Durable/Engg/Power/Cap Goods 3. Can you suggest some good stocks from these or any others? This is purely long term plan (say 2-3 years or even more ) Thanks!!!
PRANAV SANGHAVI answers, You ould buy some more of L&T and IDFC at lower levels. You could also look at the T sector with the Dollar going up they should give decent results over the next three quarters.
kalyan asked, hai sir pleze tell about the future of grasim and sesa goa
PRANAV SANGHAVI answers, I think Sesa will outperform the markets as it has done so in the past. Grasim may have a weak quarter due to rains but beyond that looks good. So if you have an investment outlook of over 12 months you can surely look at both these stocks.
PRANAV SANGHAVI says, Well its time for me to leave. Hope to catch you'll next week
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