Stick to defensives; bet on Suzlon, MCX: Experts

Technical expert Sudarshan Sukhani of s2analytics.com advises investors to carry long positions to the next day and then exit in the morning session.

Meanwhile, fundamental analysts SP Tulsian of sptulsian.com and Dhirendra Tiwari of Antique Institutional Equities are positive on Suzlon and MCX. They suggest investors to stick to defensives for the next six-to-nine months. Below is the edited transcript of the analysis on CNBC-TV18 The fall of around 70 points from the day's high turned the market into quite a roller coaster ride. Sudarshan Sukhani, s2analytics.com suggests that with choppiness in the market, investors can carry long positions to the next day and exit in the morning or perhaps not trade at all. Though the broader markets witnessed a bit of short covering, a few stocks such as Essar Oil posted a surge. SP Tulsian of sptulsian.com says, "Whenever we see a stock moving up for two or three days by 20-25 percent, it indicates that the stock is very risky and there is no point in investors taking a fundamental call.” Dhirendra Tiwari of Antique Institutional Equities adds that there are a significantly large number of good stocks that have been beaten down due to various reasons. "I recommend largecap companies which have good potential to outperform over the next two-to-three years. Investors are also advised to remain confined to defensives or companies which have good top-line or good margin visibility for the next six-to-nine months." On L&T's acquisition of a 50-percent stake in Future's non-life business for Rs 500-600 crore, SP Tulsian adds that is a positive for Pantaloon Retail as it provides funds required for repayment of debt. Tulsian does not consider the GMR Infrastructure's plans to restart work on the Kishangarh-Udaipur project as positive as the proposal defies the company’s overall strategy of  exiting road projects. "Commencement of power generation projects and exiting non-core assets to pare debt of Rs 36,000-37,000 crore will be seen as the only positives by the market." Regarding buying DLF at levels of Rs 240 after the stock crashed last week, Tulsian says that the stock merits a long call. "I expect the stock to move to Rs 270-275 over the next few weeks. However, current levels are ideal for positional traders or short-term investors." The fundamentals expert is positive on Suzlon Energy's successful completion of the USD 650-million bond issue. "It is a good buy for investors with a horizon of 1-3 years." On news regarding the possible merger of the Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Ltd (RINL), Tulsian says it is a move by the government to consolidate and improve operational efficiencies of the PSUs. On Financial Technologies, which is down nearly 35 percent, and MCX not taking off as expected, Tulsian holds the view that both stocks have bottomed out is a good buy for investors with a 2-3 months' horizon.