Stock to watch: Glenmark, Welspun Guj

Deven Choksey's stock views:

On ONGC:

The bail out package gave an amount of assurance that the Rs 38,000 crore subsidy bill will not increase for ONGC. To that extent most of the traders who were shot into upstream counters like ONGC made a short covering for which we saw a rally in to the price in the subsequent days. But it is unable to hold on to this particular price because the crude oil prices are going up. Whether this Rs 38,000 crore figure will go up or not is not clear. So, this short covering that took place is once again getting restored back. And the stock is once again coming back to its original price level which was the pre-formula price level that was announced today.

On Axis Bank:

I have started liking these banking stocks. Fundamentally there is nothing wrong with these companies. These stocks are getting de-rated probably due to the redemption pressure by the FIIs and due to investors reducing their holding of some of these companies I am keenly looking at a buying opportunity at these prices. We may see a further fall, but that could be an opportunity to buy further and accumulate further.

On DLF, Unitech and Mahindra Life:

It’s a good time to take a contrarian call and buy these companies. I don’t see too much of negativity in these particular companies. We don’t see many negatives coming out form them as far as their fundamentals are concerned. They probably have the same re-assurance as far as selling off some of their constructive properties, so yes the taller ones like Unitech, DLF, definitely give a good chance at this point in time. Even midcaps like Mahindra Life, are equally placed, with the kind of land bank, the property and the development they have. These stocks are getting de-rated largely out of the concern that they may have a slowdown effect to face. Particularly, because the capital market is taking a hard hit and realty stocks are taking the beating. But if one starts buying some of these companies stocks and accumulate them over a in this falling market, they will be able to give a good exit at a profitable time.

On Ranbaxy & Cipla:

No one has to be little selective about the pharmaceutical companies. Cipla and Ranbaxy are the top of the league as far as the portfolio position is concerned. Both these companies have larger clarity. Ranbaxy has got clarity in form of R&D and generic exports, Cipla too has the clarity in form of generic export and higher volume coming out of it. These pharmaceuticals stocks definitely are good to accumulate. Apart from the defensive strategy adopted by some of the fund managers they are still swapping into some of the pharma companies. Fundamentally also these companies look quite interestingly placed to add into the portfolio.

Anil Manghnani’s views:

On ICICI Bank, HDFC Bank and HDFC:

The stocks that have broken through their March lows will be the ones where there is a lot of concern. HDFC was Rs 2,130 or so on the March lows. That is a problem for that stock and it could easily fall all the way to Rs 1,800-1,700 sort of levels.

ICICI Bank, although weak, is holding Rs 720, which is the March low. So, as long as it does not break below the March lows, we would see a technical bounce.

On Lanco Infratech & GMR:

You will get trading bounces but the problem arises with people trying to find a bottom continuously for the last 10-15 days. As you buy with each fall and just try to average lower and lower, by the time that bounce comes, you are selling off at your cost. The strategy would be a little more patient. Let the market make its bottom or let the stock find its bottom without you trying to do it yourself. By the time you find it, you would have bought so much that your average would be much higher. So, when it bounces you are not going to make any money. Buy at strength rather than weakness.