KYI: How to play your favourite stocks next week

Strong global liqudity support helped the Indian market this week. And signs are that this support will be there next week as well. But are you -- the investor -- well positioned to take advantage of the liquidity gush? 

Moneycontrol.com gets Kartik Mehta of Sushil Financial Services to answer your queries you voiced on our Facebook page.

Below are his answers for your questions.

Deepanshu Sethia:  What is your target for State Bank of India and Infosys till December 2012?

A: SBI can scale up to Rs 2200, if it does not fall below Rs 1800. So it will be prudent to accumulate on dips near Rs 1830-1850 levels with closing stop loss of Rs 1800. Infosys is slowly coming out of woods. There may be one more quarter of pain and worst case downside of Rs 2200 and then there will be gradual up move. Fundamentally, this stock has the potential to touch the band of Rs 2700-2850. At current prices both the counters are very good pick from medium-to-long term prospective.

Diwakar Jayswal: Can you suggest six stocks for six months investment?

A: In the large-cap we have Reliance Industries, ICICI Bank, HCL Tech, Infosys, SBI and BPCL.  In the mid cap space there is companies like GMDC, Tech Mahindra, Hexaware, PTC India, Cadila and Aditya Birla Nuvo. In small-cap we have Nesco, Everest Industries, PTC Financial Services, Kajaria Ceramics and JBF Industries.  

Paras Verma: What is your view on PSU banking stocks?

A: PSU banking stocks are attractively available now with average valuation ranging from 0.4x to 0.8x ABV with reasonable ROE profile. There is still a risk of rising NPA, so one need to be selective out of wide universe. In large category we pick BOB and Indian Bank & Canara Bank in mid-caps.

Sanket Bathia: What is your one-month target for Tata Motors?

A: Tata Motors should find support near Rs 225 and on upside above Rs 250 new levels will be seen till Rs 280-290.

Lakshmi Baskar: What is your view on Kingfisher Airlines?

A: Avoid it.

Kashish Kumar: I have 100 shares of SAIL at Rs 97. Can hold it for one-year? Should I hold or sell or average?

A: You should sell and switch over to other quality stock as steel outlook looks bleak along with FPO overhang as well. Best play in metal & mining will be Hindustan Zinc and GMDC.

Mohiddin Moodbidri:  What is your view on Alok Industries, Jain Irrigation, Bajaj Auto and Adani Enterprises?

A: I am cautiously optimistic on Bajaj Auto as there is overall industry slowdown coupled with margin pressure amidst rising competition and slowing exports volumes.