As a direct fallout of Tuesday's UPA win in parliament, the Sensex soared above 800 points in the final trading session on Wednesday.
The Sensex opened high and scaled greater heights as trading progressed.
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, stock market expert Pranav Sanghavi, replied to many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says,
Good afternoon everyone and welcome to the chat. Let's begin.
bobb asked, what is the strong resistance for nifty next
PRANAV SANGHAVI answers, at 2008-07-23 15:53:52Bobb, as I have mentioned earlier I am not a chartist or a technical analyst so will not be able to help yo with technical levels for the index or the stocks.
Akil asked, hi, I haev 500 for Ispat purchased at 39.4. What is the future of the stock? Thanks
PRANAV SANGHAVI answers, Even though the stock has given decent results as compared to it's past performance, I would still be vary of the stock.
PRASHANT asked, Parvsnath 400 shares at 340 avg.. what to do
PRANAV SANGHAVI answers, Parsvnath is definately a weaker stock amongst the real estate players on the exchange. I think you would have to wait a bit longer to see a decent profit.
SARAVANA asked, WHAT ABOUT LNT & DLF
PRANAV SANGHAVI answers, I have always liked L&T and still continue to do so. It is still cm bonus. I would look at it with a long term perspective. It has shot up over the last two trading sessions, so I would nt jump in to buy but wait for it to ease up a bit. I like DLF also. Despite all the gloom and doom surrounding the real estate sector, I think DLF shall continue to deliver decent results over the next few quarters. I would look at it with a long term outlook but on corrective days.
pNovice asked, What about GMR Infra stock. Can I buy on current level. Regards,
PRANAV SANGHAVI answers, The stock was trading on very high PE ratio's. But with a long term outlook the stock looks good. They have recently completed the Hyderabad airport which is on par with many of the foreign airports. They also have various other large projects under way which shall be completed over the next couple of years. I would only look at it with a 1 to 2 year outlook.
PRASHANT asked, rel power..anil share .. safe bet for next 2 yrs at this leval
PRANAV SANGHAVI answers, I would rather go with NTPC or Tata Power as they have power plants already on ground as compared to REL Power which has yet to have a plant commissioned.
murali asked, i have 200-SAIL@140 wat to do hold or sell
PRANAV SANGHAVI answers, I would hold on. Even though SAIL is a metal commodity stock which are cyclical in nature, I think the demand for steel will only grow considering the infrastructure push by the government. So look at it with a 1 to 2 year outlook you should surely see a decent return.
Akil asked, what about Jet Air, RPL and ICICIbank
PRANAV SANGHAVI answers, In this scenario I would be scared to touch an airline stock. With crude prices high and local competition heated up. I like ICICI bank and that could be looked at with along term outlook but on corrective days and not a day of rallies like today.
KKA asked, Hi Pranav,,, How is bharat seats,integrated hitech and cybermate infotech? im holding these and am under big losses.. shall i hold or book profits and exit??
PRANAV SANGHAVI answers, I don't follow either ofthese stocks but I would recommend you sell and book a loss and switch to quality frontline stocks.
vik asked, I have mutual fund of DSPML natural resouces and new energy what should I do. At present it is at 9.60
PRANAV SANGHAVI answers, Mutual Funds are normally not bought with a short term perspective. I would continue holding on with alonger term outlook.
Aadi asked, Can you tell me your views on IDBI, RPL, Appolo Tyres, GMRInfra, IDFC, NIITTECH, SRF. should I sell or hold this for long term?
PRANAV SANGHAVI answers, I like the stocks that you have mentioned. You could hold on with a long term perspective.
Mathew asked, as a begineer is this a right time to enter the market?
PRANAV SANGHAVI answers, I would wait for the markets to correct a little bit before I enter the markets as they still have some weakness and the markets are still in the bearish phase. When the markets were around 12,500 levels that was a better time to enter.
heyram asked, Hi Pranav, This is the right time to invest or shall we wait.......( In telugu it is balupa vapa :-))
PRANAV SANGHAVI answers, I would wait and not get euphoric with todays massive rally.
narinder asked, should I buy tata motors & reliance power and at what price
PRANAV SANGHAVI answers, Tata Motors has a large acquistion looming over it's head. I would look at the stocks surely but only with a long term perspective.
Rajveer asked, Will the market go down again or can we see uptrend in market from now on wards
PRANAV SANGHAVI answers, We still are in a bearish phas. If tomorrow the crude shots up by $10 overnight again the markets will correct. So one should not get carried away by todays rally and trade cautiously as the markets can come down again.
jay asked, i have 100 jindal steel shld i sell at 2100?
PRANAV SANGHAVI answers, If you are in profit then you could. If not you can hold on for6 to 12 months.
ARB asked, I HAVE SEEN THE UP TREND IN BANKING AND INFO SECTOR WILL IT SUSTAIN
PRANAV SANGHAVI answers, The info sector was rising essentially as the Dollar Rupee ratio was going in their favor. If the dollar corrects and goes back to Rs. 39 or Rs. 40 levels then they might get affected. Although the frontline tech stocks have given a better than expected guidance for their EPS for the current year. If they acheve that then the stocks should rise over time.
Vicks asked, Pranav, I have Powergrid 50@90.54, DLF 10@651 NTPC 50@192, JPHYDRO 100@67, RPOWER 20@160, GUJNRECOKE 75@129.65 and Suzlon 25@189. What's your opinion on my portfolio. I am looking for about 5-7yrs time frame.
PRANAV SANGHAVI answers, With your time frame I am pretty confident you will see very decent returns. You do have a decen mix but with a bias to the energy and power sector. I would add some bankng, engineering and some other sectors also to the porfolio.
vip asked, hello pranav what u say about madras cement @ 2500 and sundram finance @ 560 both declared bonus 1:1 should i sell dlf my avg price is 459
PRANAV SANGHAVI answers, I would hold on to Madras Cement surely. I am bullish on the sector. Dlf also hold on for atleast two quarters you should get an opportunity to exit with profits.
berger asked, I have purchased 2500 shares of JB chemical @ 61/- present is 39/-, can I hold, or sell or purchase it for average
PRANAV SANGHAVI answers, As
most midcap and B segment stocks get hammered the mot during down turns and corrections and they also take that much longer to recover, so will JB chem.
venusmail asked, Is it right time to enter in Suzlon,Rajesh Exports,Renuka Sugars,Zee News,Idea,Jyoti Structures,IFCI and Nagarjuna fertilizers.. Thanks in advance
PRANAV SANGHAVI answers, Most of the stocks that you have mentioned are the liquid F&O stocks which are dangerous to trade on. You could look at Suzlon with along term outlook.
Lijesh asked, i am holding 100 shares Clutch Auto, i brought it 150 per share..the current market price is around Rs.40. can you suggest me wheather i should hold it or sell it?
PRANAV SANGHAVI answers, You have got in at a very high price as compared to the CMP. But you can't do anythng else but to hold on to the stock. It will surely take a very long time to recover and for you to see profits.
jay asked, wht should i do with rpl is ut the right time to buy?
PRANAV SANGHAVI answers, RPL is expected to commence its commercial production towards the end of this year. I think it would rise marginally till then. Oncea few quarterly results are in then it should rise steadily based on it's performance.
berger asked, I have 5000 shares of ttml purchased @65/- now 25/-, can hold, sell or purchase for average.
PRANAV SANGHAVI answers, TTML has not much going for it. It seems you bought it towards the ned of last year in the news frenzy and the stocks highs. But the stock has given bad results and there is not much happening in the stock either. So I don't see hy the price should rise in the near future.
jay asked, can i buy peninsula land?
PRANAV SANGHAVI answers, With a long term perspective surely.
rajiv asked, i have purchased at a sensex level of 12800 shiuld i book profits now
PRANAV SANGHAVI answers, If you are a short term trader you should.
suman asked, Hi.. what is the short term outlook for the market? with oil prices stabilising for the last 1 week, can we expect more rallies in the market?
PRANAV SANGHAVI answers, This rally could last for a couple of days more if there is no negative news in the global markets. But if Oil prices jump that could cause the markets to come down marginally again.
tst asked, Invested in NTPC Powergrid RCOM Bharti BankOfBaroda BankofIndia SAIL Rpower? Should I continue investing with them
PRANAV SANGHAVI answers, Yes you could with a long term perspective.
vivek asked, Dear Mr sanghavi The market rose substantially today and i made about 18% profit on about 90000 investment..i hav shares mainly of ICici, IFCI, reliance natural what we can expect in very near future, i'm planning to sell it tomorrow..would it be prudent?
PRANAV SANGHAVI answers, If you are a short term trader it is always very prudent to book profits at timely intervals. If you are managing such a high return in 3 days, I would surely start booking profits as the price rises. As the markets could com off any day.
sar_007 asked, I invested Rs. 70k in ULIP tax benefit. Is it a right investment. Approximately How much return shall I expect, invested in dec. 2007. My friends are saying that I would have earn Rs. 20k more on the same amount if I invest it in MF.
PRANAV SANGHAVI answers, In Dec 2007 ? You would not get any return for a month already gone by. But normally, studies show that ULIP plans over 10 to 15 years could yeild you better retuns a fixed deposit would yeild.
ritesh asked, PRANAV: DO YOU TRACK DREDGING CORPORATION ..PLEASE GUIDE ME
PRANAV SANGHAVI answers, A couple of years back the government made a special proivision for dredging companies in the Union Budget. That benefit still continues. Drdging Corporation has a strng balance sheet and decent performance. I think you could hol it witha long term perspective.
sds asked, should I buy tata motors , TCS and RPL with a 2-3 years holding perspective
PRANAV SANGHAVI answers, Yes you could look at these stocks with that time frame. I would add SBI, RIL and L&T t the list.
RRR asked, CAN I BUY IFCI?
PRANAV SANGHAVI answers, The company has given lower performance in terms of quarterly results. I would not look at it in the short term.
LIA asked, HI CAN I BUY NEYELI LIGNITE AND NTPC AND HDFC
PRANAV SANGHAVI answers, Yes surely with a medium to long term outlook.
rupa asked, can i purchase suzlon energy, ntpc for long term one year
PRANAV SANGHAVI answers, Yes you can look at them with a one year outlook.
charu asked, i m interested in buying shares, which would be the best one
PRANAV SANGHAVI answers, I would look at frontline index stocks not on such a rally, but when the markets correct a bit and cool off.
sangram asked, can u tell me what is future of ICICI bank
PRANAV SANGHAVI answers, I think ICICI will bounce back from its lows. It is one ofthe largest private sector banks and srely has a strong balance sheet. They are also very agressive in their approach so I am pretty confident despite the stringent conditions for banking currently they will perform in the long term.
mh asked, 110 shares DLF@ 510; 10 Suzlon @ 230; 30 Dr Reddys @ 620; 30 BIOCON @ 400; wat can i do at present scenario
PRANAV SANGHAVI answers, You have got in at high levels. You will have to wait for 6 to 12 months.
Tushar asked, Hello Sir, Considering the growing importance on cleen and green energy. What do you think of Praj Industries and Suzlon from a long term perspective of 4-5 years. Are they good options to bet on?
PRANAV SANGHAVI answers, There are quite a few companies foraying into clean an green energy projects. Amongst them are Praj Industries which supplies bio-fuel plants, XL tele energy which manufactures solar panels and is planning to set up solar power plants for feeding the grid and Suzlon oneof the lagest wind power company in the world. If you have again a long term outlook I think these companies are good bets.
aks asked, hi pranav, what is your take on Tide Water Oil. today it soared by Rs. 350(10%), but with good volume as compared to other days?
PRANAV SANGHAVI answers, It is essentially a lubricant manufacturer and has cross holdings with another Government company called Andrew Yule which is also listed. Both has large land assets and have been decent performers over the years.
roopa asked, i m interested in buying shares which will yield my good return on long run. Please suggest me which one i can choose from ?
PRANAV SANGHAVI answers, I would essentially look at the frontline stocks like RIL, SBI, L&T, Infosys etc. You could also look at other stocks like HFC, ICICI, IDFC, NTPC albiet with a long term perspecive of over 1 year at least.
PRANAV SANGHAVI says, Well it's time for me to leave. It's been great chatting with you guys. Bye for now.
Chat with Pranav every Wednesday at 4 pm
