Expert tips on stocks/sectors and how to trade them ahead

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Expert tips on stocks/sectors and how to trade them ahead

In a chat with CNBC-TV18's Vivek Law and Sonia Shenoy, Radhika Gupta, Director, Forefront Capital Management gives fundamental view and Rahul Mohindar, viratechindia.com gives technical view on various stocks.

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In a chat with CNBC-TV18's Vivek Law and Sonia Shenoy, Radhika Gupta, Director, Forefront Capital Management gives fundamental view and Rahul Mohindar, viratechindia.com gives technical view on various stocks.

Here are the expert views on various stocks/sector:

On Hindalco :

Gupta is very bullish on the metal space as a whole. "Within the metal space, Hindalco is one of the better looking stocks and it is trading at reasonable valuations because metals had been beaten down a little bit unfairly because of a little global crisis earlier. This is a company that is planning to increase capex plans aggressively, so things should pick up for Hindalco. All in all, it's a very strong place to be in."

Mohindar says, "For a short-term trader who wants to look at a three-six month window, in terms of time, you are looking at targets of about Rs 200. But given a slightly longer-term view, let's say a year or two from now, I think the stock has the potential to show levels of Rs 215-220. My own sense would be that in the next 20% that you get that is a point you should probably look at profit taking. There is no reason why I tell you to move out of the stock at these levels. It has got most of the indicators in the positive both on long-term and short-term accounts. Even now I would say holding on with a stop loss, which is going to be the Rs 164 level, which is a good support for the stock, is essential. So, keeping that stop loss, it continues to be a hold and it would look for Rs 200 plus levels."

On ITC and HUL :

Gupta says, "There are couple of things about FMCG. Firstly, if you have a long-term horizon, FMCG in general is a very strong space to the extent that you believe in the domestic consumption story as part of India's growth. The issue is that largecap FMCG is likely to not be as bigger beneficiary because if you look at the results ITC and HUL have posted, both volume numbers and profit numbers have been disappointing and it's become a lot more about volume focused growth, which is hurting the bottomline. So, HUL in particular has seen a lot of pressure and that's something that we expect going forward.

"ITC is a little bit better bet because in addition to the FMCG business the cigarette business has consistently been a cash cow, the margins have been pretty consistent in that space and the volume growth has also been strong. So, that's on ITC and HUL. If someone's interested in FMCG in general, what you could do is look at smaller FMCG players, so the midcap FMCG segments, so this is things like Marico , to an extent Titan Industries , Dabur which are really making some headway in this space."

On KRBL :

Mohindar says, "The stock is pretty good from a long-term count, but we have obviously run up to a good degree. We have had a significant price and volume breakout over the last couple of weeks, which certainly makes this very potential longer run. But again if you are worried about the short-term, Rs 36 to Rs 38 is a resistance area we are still sitting in that zone where we might knock off 8% or 10%. So, unless you are really worked out about the very short-term, I would still recommend holding on to the stock, we see this as a candidate for about Rs 52. As I said one has to be prepared that the stock can correct to something like Rs 31 - Rs 32. So, keeping that downside cushion one should continue holding on to KRBL. It's made a case with the kind of volumes and price breakouts that we have seen over the last week where it shows that there is a lot more potential to come."

"I am obviously looking at a timeframe of about six months plus, if it comes in before it's a stock which can give you one of those sudden momentum moves. But again one should keep in a timeframe of approximately six months in mind."