KYI: Get 4 largecap, 4 midcap picks for long-term

Moneycontrol.com got Samir Gilani, head-equities and derivatives, MAPE Securities to answer the stock queries you sent us on our Facebook page as part of KYI (Know Your Investment).

According to Gilani, index stocks such as Tata Motors , Cairn India , Reliance Industries and Hindalco look reasonable for the longer term.  "In the midcap space, stocks like Jyothy Labs , Emami , Dabur and Unichem Laboratories should perform well," he adds.

Check out his comments.

Lohith Uppala: Will the Nifty touch 5,500 this month?

A: Given the recent run-up, it's only fair to assume that we could see some consolidation (with a slight negative bias) in the coming week. That could take the index to 5,150, 5,200 levels. For the rally to resume, a close above 5,400 is essential, coupled with an expansion in volumes.

Karthi Keyan: Can you suggest top 10 stocks for the long-term?

A: Index stocks such as Tata Motors, Cairn India, Reliance Industries and Hindalco look reasonable for the longer term.  In the midcap space, stocks like Jyothy Labs, Emami, Dabur and Unichem Laboratories should perform well.

Veena S Mehta: Which banking stock can be purchased now?

A: Axis Bank .

Mohiddin Moodbidri: Which sectors will perform well in August series?

A: Based on our derivatives data, which tracks open interest and cost of rollover patterns, we think that banking and cement stocks will do well. Bank stocks saw a good rollover from July series to August with a good addition in open interest and increase in rollover cost suggestion aggression from long rollers. Our top picks are Grasim and HDFC Bank .

Batul P. Kadegaonkar: How does Tata Motors look on the weekly charts and in the short-term?

 A: The stock has corrected significantly from high of Rs 320 in late April to current price of Rs 230, a decline of 30%. The weekly charts suggest that large part of the selling is done with and the stock could see some momentum on the upside. However, you should buy closer to Rs 210 levels and keep a tight stop of Rs 203, recent low.

Gurpreet Singh Chohan: Hindustan Unilever , Cipla or Sun Pharma , which one is the best buy at this point of time?

A: Sun Pharma.

Mohammed Nadeem Ahmed: Can I purchase Reliance Capital at current levels for six months?

A: The stock seems to be bottoming out and has formed a good base at Rs 318-320. The stock is also trading above its 200-daily moving average. However, the volume patterns are still not suggesting a major breakout. I sense that there are better plays in the NBFC space that Reliance Capital

Hemnath Goutam: Is it a good time to buy Ashok Leyland ?

A: Yes. The stock has a good support at Rs 20. After correcting almost 30%, in the last few months, one can be certain that a large part of the selling is over.

Rahul B Dass: What is your view on LIC Housing Finance for one-two months?

A: The stock usually finds good support near its 200-day moving average, which is currently at around Rs 240 levels. One can look to buy closer to that number.

Hemanto Ghosh: Is Development Credit Bank (DCB) a good buy?

A: From a short-term perspective, yes. However, from a medium-term perspective, I would rather look at largecap stocks such as ICICI , Axis and Yes Bank .

Biswadeep Gogoi: I have 10 shares of Union Bank of India (UBI) at Rs 111. Should I buy some more on dips?

A: I never suggest anyone to buy on dips. It's not a strategy that I believe in. If you do want to pursue a buy on dip strategy then I suggest buy on dips until Rs 155. In the case that this is broken, please don't purchase further.