Check out: Expert view on 6 largecap stocks

On Sterlite Industries

Baliga says, “If you look purely at the numbers of Sterlite, they seem extremely good and from that point of view one would always say that hold on. If you look at other issues, which are there for Sterlite, the environmental issues, issues of mines, the group has issues with establishment. So, from that point of view, I would suggest that it is better to sell off at these levels, book a loss and just wait out and see how things pan out because it does not make sense when the group overall has issues with the establishment to hold on to the stock.”

Kulkarni says, “Technically, the stock is presently in a sideways range, probably between Rs 150-155 on a lower side to around Rs 190 on the higher side. I would say that so long as the stock does not break the Rs 150 mark, it is okay you can probably hold on. But below Rs 150, you have a problem in your hands. The strategy can be that on any bounce towards the Rs 180 mark you exit out. If the stock manages to move beyond Rs 195-200 mark then you can re-enter into the counter or look for other opportunities in the metal space.”

On Suzlon Energy:

Baliga says at Rs 100 – Rs 110 they had given a sell call, with a target price of Rs 60. Below those levels they turned buyers and have been positive on Suzlon since then even though it’s not performed in the recent past especially the past eight-10 months. He added, “What we saw recently closer to the Rs 44-Rs 45 should be the low for Suzlon. At this level an investor can pick up and average out his holdings and possibly wait for the one-and-half-two years because things seem to be turning around with the order flows which are much better than what we have seen in the recent past. Technically there is a resistance around Rs 58-60. Crossing that will be very difficult.”

On Punj Lloyd :

If an investor is looking at it from a trading perspective, Kulkarni feels that above the level of Rs 140 is an ideal price to enter Punj Lloyd because the market has outperformed and the stock has underperformed the market in a very big manner. He says, “The stock is in a strong lower top-lower bottom cycle. Yes, lower levels are possible. As a technical analyst I will not advice the investor to buy into the stock on dips. Wait on, let this stock consolidate and show some sign of strength of a higher top-higher bottom on the weekly charts, then enter. Presently that level comes to around Rs 135 to Rs 140. If an investor is willing to trade, then he should trade only above the levels of Rs 140. However, if he wants to invest, he should take a look at the fundamentals. Probably below the levels of Rs 90-95 one can probably take a look at this particular counter but from a very long term perspective.”

Baliga points out that when investors talk about buying stocks just because they have tested new lows, it is not a prudent thing to do as the fundamentals are pathetic and it is possible that those stocks can even fall further. He adds, “If you are talking of Punj Lloyd, at this point of time it’s a decent bet for the long-term because things are clearly changing. As far as the order book position is concerned it is improving. We have seen in the last two-three months lots of new orders have come. The only issue it faced in the last two-years is execution which is getting sorted out. This is one company which has been there for decades so a couple of execution issues do not mean that we should write-off the company. The only irritant which I see immediately is their bid for Bharti Hexacom. We are also wondering as to why they have bid for that. Possibly levels of Rs 94-95 could be the downside but again you really can’t buy at the low.” 

On Videocon

Kulkarni says, “I would say that you should avoid these counters. If you see a Videocon, it has a decent resistance around the levels of Rs 240, which is the 200-day moving average. Another thing, I would like to say that whenever there is a negative news associated with the stock people tend to buy into the stock at lower levels and then wait out for stock and hope that the stock will move up. But whenever there is such a news one should avoid the stock. Let the stock cool off, let the news subside, let everything subside, let the picture become clear then you can enter into these counters. Considering the Sebi orders which have come I would say that wait out let us see what happens going forward.”

On Real estate

Commenting on the space, Kulkarni says, “Real estate as a sector as a whole has unfortunately underperformed the market in a big way. Most of the stocks show you a strong lower top lower bottom. In the recent fall which has taken place in the past 15-20 trading sessions we have seen that real estate stocks have battered the most. I would say that the stocks are still in a strong downtrend. Wait out – let them consolidate. Unless and until you find some fundamentally compelling to buy into them I do not think it makes sense to enter in these stocks. The stocks have really underperformed the index is near to new highs the stocks are near to new lows. That itself speaks whether you should invest or not. I think it is not the time to enter real estate as of now.”