The markets are smiling away, with both the Sensex and Nifty in green terrain, there is no slow down in the markets at all. Experts give their views on which sectors and stocks can be definitely bought in this rally.
Speaking about sectors which will perform well, Amit Dalal of Amit Nalin Securities says, "Technology, engineering, to some extent auto component, oil marketing because of the benefit from oil price fall and real estate are the sectors, which will have a good quarter coming forward."
Speaking on his top trading call for the day, VK Sharma of Anagram Stock Broking says, "Our top trading call for the day, which I gave was GVK Power, but there one finds that yesterday there was a 10% circuit and now today one has a reduced 5% circuit."
He adds, "In GMR Infrastructure, should there be a correction, I would be willing to pick up GMR during the course of the day."
Speaking on the telecom space Dalal mentions, "Bharti Airtel and Reliance Communications are definitely stocks, which are benefiting by this whole upsurge of consumer demand and this upsurge is expected to continue even more."
He further adds, "If one talks to any FMCG player, they think that there is a huge rural demand, which still has to come up. The total consumer population for phones is huge and there is huge room here to grow where both these two leaders are concerned."
In the engineering and construction space, Dalal tracks Alstom Projects and he likes the stock. "I track Alstom Projects and I like the stock. All sectors, which they are performing in, are doing much better. They had an exceptionally improved result this time and one is not sure how that will work out for the next quarter or the quarter after that, but definitely where power sector growth is concerned, they are very well placed," adds Dalal.
Among real estate stocks, Dalal finds only three stocks worth a buy. "One only has Mahindra Gesco, Peninsula Land and Unitech, which one can buy. I would allocate a bit in each of these stocks because they are stocks, which will continue to give us news from different things that they do, be it development of SEZ, huge property or any purchase of any land," says Dalal.
In the largecaps he states that BHEL and Larsen & Toubro remain his great favourites.
Speaking on Siemens India, VK Sharma of Anagram Stock Broking, says, "It is doing perfectly well. For the last four days it had a resistance in the vicinity of Rs 1,255 and that is broken now. I think it is headed for newer levels."
Experts not gung-ho on these stocks, sectors
With the Sensex trading at all time highs this week, and the uptrend seemingly continuing, one must question which sectors, stocks to evade at this time.
Technical analyst VK Sharma of Anagram Stock Broking and Amit Dalal of Amit Nalin Securities advise to stay away from ONGC and the FMCG sector in general.
According to VK Sharma, with crude going down, ONGC looks a bit weak. "It doesn't look good at this point in time. But technically I don't see the stock going below Rs 780, where this stock has a good support.
"We could see a bounce back happening in that counter at those levels, but currently we have a bearish kind of a candle on the stock," he says.
Meanwhile, Amit Dalal is not too upbeat on the FMCG pack. He says, "The FMCG numbers were not very exciting, infact quite flat. They are very expensively or fairly valued right now. Therefore I would perhaps allocate more capital to midcap technology stocks where there is a huge interest coming in."
"These sectors have tremendous promise for the next few quarters. So FMCG is a sector where I would not put in more money right now at these valuations," he adds.
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