Feb 18, 2013, 04.40 PM IST | Source: Moneycontrol.com

KYI: How you should trade stocks next week

It was a volatile day on the Dalal Street as the markets turned around in late trade. Indices closed flat after a weak start. The Nifty closed just shy of 5,900 and the Sensex ended at 19,468.

It was a volatile day on the Dalal Street as the markets turned around in late trade. Indices closed flat after a weak start. The Nifty closed just shy of 5,900 and the Sensex ended at 19,468. In the currency market, the rupee ended the day weaker against the dollar at 54.22. 

Moneycontrol.com got Aditya Damani, Head of Research, KM Global Financial Services to answer the stock queries you sent us on our Facebook page as part of KYI (Know Your Investment).

He recommends buying Tata Steel and Ranbaxy.

Satwat Basu: What would be the likely range for Nifty by Feb13 expiry?

Damani: We believe that the likely range for the Nifty in Feb-13 would be 5730 to 5963.

Jayraj Solanki What to do in HDIL ? Hold it or sell it?

Damani: I would recommend that you sell HDIL.  If you would like to pick a stock with exposure to Mumbai real estate, then you can invest in Peninsula Land or Indiabulls Real Estate.

Sanket Bathia Should I buy Tata Steel at Rs 375? 

Damani: If you are a trader you can buy Tata Steel at current levels.  If you are an investor I would recommend that you buy NMDC .

Dr.Jayesh Gaygol: What is the future of tin plate? What is the target for 6 months? 

Damani: I am not very familiar with this stock.  I expect the stock to reach 56-60 over time.

Samrat Bhattacharyya I have bought Punj Lloyd at Rs 183. Till how long should I hold it? 

Damani: You should look at exiting Punj Lloyd above Rs 52 and invest in other infrastructure players such as Shriram EPC or IL&FS Transport.

Ram Brahmam Kilari: What is the future of Ranbaxy and Cairn India ?

Damani: Ranbaxy will be a good trading buy below Rs 400.  Cairn India looks weak.  Traders should sell it on any rallies while investors can hold on for a target of Rs 330.  The stock will rise if the management is able to increase production at new sites.

Nikhil Gupta: Are JP Associates and Allahabad Bank good shorts for this month?

Damani: JP Associates has already fallen a good amount this month.  This would be a good level to cut short positions for the month.  Fresh shorts should only be initiated above Rs 80 if your view remains bearish.  Allahabad Bank is also at strong support levels where short positions should be reduced.  Falling interest rates augur well for banks hence fresh shorts should be considered only above Rs 157.

Narendra Babu: Is it time to start building a portfolio? Or can we see more downside?

Damani: Yes it is a good time to build a portfolio but we have to be very selective in our stock selection.  You can look at strong PSU companies such as SBI , NMDC & NTPC at these levels.  Private banks such as ICICI Bank and media companies would be attractive at lower levels.

Zahid Aziz Ul Hussain I wan to invest in RCOM and Tata Motors . What are your views on this?

Damani: I would avoid RCOM.  Bharti Airtel or Idea Cellular would be safer bets on the telecom story. Tata Motors is a good stock for the long term.  Please invest in it if you have a time horizon longer than 2 years.

Jai Chandran: What is the call on Sun Pharma and Axis Bank in one week span?

Damani: I am sorry I look at a longer time horizon such as months or years.  I won't be able to comment for a one week span.

Sanjay Sindhi: What is your view on GSPL ? At Rs 80, should I buy, hold or sell it?

Damani: I think GSPL will remain in a tight range.  You should get an opportunity to sell it above Rs 83, I am assuming you have bought it at Rs 80.  My top picks in the oil & gas sector would be ONGC and HPCL .

Logesh Kesavan: What will be the target of Larsen and Toubro in one month ?

Damani: Larsen should be in a range of Rs 1400 to Rs 1540 over the next month.

Sagar Saxena: I hold 500 Alembic Pharma at Rs 67.7, 150 shares of Eros International at Rs 216.5, 100 shares of Venus Remedies at  Rs 267 & 90 shares of Amara Raja Batteries at Rs 273. I have a time horizon of two to three years. Kindly advise. 

Damani: You can look to sell Alembic Pharma after a few months, currently it is in a strong uptrend. I wouldn't keep it for the long term.  You can hold the rest for the long term.

Amit Parashar How is Alok Industries for the long term?

Damani: I would avoid it

Ram Karthik What about Indian Bank and Indian Overseas Bank ?

Damani: I would prefer other banks such as SBI, ICICI, City Union or South Indian Bank.

Disclaimer: I or my clients could have a position in the stocks discussed.  K.M. Global Financial Services Pvt Ltd or any of its employees/associates won't be responsible for any trades or liabilities.  Please consult your financial advisor before making any investment decisions.
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HDIL Tata Steel NMDC
Punj Lloyd Ranbaxy Labs Cairn India
Jaiprakash Asso SBI NTPC
Reliance Comm Bharti Airtel Idea Cellular
Sun Pharma Axis Bank GSPL India
Guj State Petro ONGC HPCL
Larsen Alembic Pharma Alok Industries
Indian Bank IOB

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