 Stay long but don't enter mkt now: Deepak MohoniPublished on Wed, Sep 16, 2009 at 15:12 | Source : CNBC-TV18 Updated at Wed, Sep 16, 2009 at 19:14 38491 Investors following LIC Housing Fin. Share this News with them.
Here is a verbatim transcript of the exclusive interview with Deepak Mohoni on CNBC-TV18. Also watch the accompanying video. Q: The Nifty and the markets seem to be on a roll--4937--what would you watch out for, is your advice even at this juncture to go long? A: Stay long and don't go for the medium and longer terms--this is not the time to get in but this is definitely a time to hold on and this is where earlier efforts pay-off. At the moment, the level below which the trend changes that means it goes down is about 4,750 on the Nifty so now we are moving away from that as the market goes up. So there is no real risk right now of a trend reversal because we are moving in the right direction, but to get in now would be a little too late in the day and people should have got in at the start of the uptrend. Q: Do you see price volume action to be so strong? When you look at fundamentals, someone would say buy Infosys but the other would say it is going to take you about a year to make 20% then you have these XYZ stocks that make 20% overnight. Should you be focusing on momentum, which means go against the grain and basically say, look if hotels have the speed go with the hotels or if banks do then go with it, and finally, at the end of the day it's the profit you make and you can always put a stop loss you got any calls out there similar to this, would you go with the momentum or put a stop loss? A: Yes if you are a short term trader you would definitely do that and a short term trader is doing that all the time. The momentum stocks are for short term traders, I would say that if somebody is holding a long term portfolio one should probably have given that and it's a fairly stable bull market right now, and perhaps, it could have about 20-25% of momentum stocks in it but I don't think any long term investors would seriously contemplate holding too many momentum stocks because they are pretty lethal on the way down as well and the market can go down any time and long term portfolio holders know that. Q: What about the two sectors that are on fire today, the steel stocks-- Tata Steel , SAIL and Jindal Steel --as well as the hotel stocks? Any where the chart patterns indicate that there is still more headroom? A: Both these sectors were not leaders particularly in all these intermediate segments. So it is looking like a rotation whatever that has been ignored for a while comes aback in. This whole rally started with stocks like technology which are quiet at the moment and what you would probably find is if the trend continues another week or two it would be back to technology after a while and that is just rotation. Q: You were talking about hold on to the stocks if you have and if you don't have then this may not be the time, let us start with hotels, sugar, auto ancillaries and steel because if you just go to a one or three month chart many of these are U-shaped charts, these are not straight lines trending up, so what do you do here with these stocks? A: Amongst these, auto ancillaries are pretty strong, they are not very high volume stocks but the auto stocks are running away in this whole bull market, and naturally, auto ancillaries are going to do well. They are perhaps fundamentally sounded as well as they don't have that much debt, the overall situation amongst these sectors that you mentioned, I would go with auto ancillaries first and steel and sugar last really because these both show a lot of vulnerability on the downside, the stocks could easily fall 7-8% a day and you don't find that happening with too many other sectors, so I would be a little wary of steel and sugar. The only sugar stock which shows a little less downside risk has been Shree Renuka which has been behaving a little differently from the rest of the pack. Q: What about LIC Housing Finance ? A: This has been one of the very solid stocks in this bull market. It has already performed way ahead of most other stocks, it doesn't fall very much. I am looking at all the stocks which fall because whenever there is a reversal what is it going to do to the portfolio, LIC doesn't fall very much. It had gone through almost a month or two of consolidation, and now it seems to have started another move up. So definitely a hold and buying anything right now is a little late in the day, your risk is increasing and your returns are anyways lower if you buy at these rates then when you had a chance to buy lower. Disclosures: I hold LIC Housing.
PREVIOUS STORY Trending NewsBusiness News
|
News MS Sahoo Says On CNBC-TV18 New Guidelines Are An Improvement Over The Old Ones  The latest earning numbers FIRST on CNBC-TV18
Videos
May 29 2012, 12:19 Expect Tata Motors Q4 PAT at Rs 4200 cr: StanChart - in Brokerage Results Estimates Interviews
 May 29 2012, 22:37 | Source: CNBC-TV18  May 29 2012, 17:34 | Source: CNBC-TV18  Subscribe to Moneycontrol Newsletters |
||||||
