Following the recent market rally, a number of shares have seen a sharp upmove, with some inching close to their 52-week highs.
In CNBC-TV18's Closing Bell segment, analysts took turns answering what one should do with such stocks -- whether trend-following dictates traders or investors should hold on to gains or whether it is time to book profits.
Some of the most sterling performers during the bounceback have been commodity plays, after having recovered from throwaway valuations.
Sanjay Bhasin of IIFL urged investors to continue to stay on in such stocks for more near and long-term gains.
"Just because shares have rallied recently doesn't mean they won't continue to do so," he said, adding that he would pick out leaders in each space as stocks to bet on:ONGC,NTPC, Coal India,Hindalco, JSW Steel and Power Grid.
"We are on the cusp of a very big bull run in 2017. These stocks should benefit," he said.
Autos and auto ancillaries too have rallied smartly. Bhasin said shares such as Tata Motors, which have risen about 80 percent from its lows, may take a breather but was a definite hold. He also picked out Ashok Leyland, Eicher and Shriram Transport as more plays on the auto sector.
"Tata Motors is the cheapest largecap," Parag Thakkar, Head - Institutional Sales, HDFC Securities said. "At 4.5 times EV/EBITDA and with the Chinese joint venture turning around, it is our top pick."
He added that auto ancillary companies such as Jamna Auto, Sundaram Fasteners and Gabriel India were also likely to outperform going forward.
Textile companies were buzzing in trade today amid expectations that the government would unveil a new policy for the sector. But analysts said investors would be better off staying away from the sector there is clarity on the outlook.According to independent market expert Ambareesh Baliga, Brexit fears have eased to certain extent but niggling worries remain. There could be knee-jerk in case it does happen but local markets are unlikely to crack, he says. But if the vote is against exit then Nifty could break the next big resistance of 8,250.Brexit stocks or companies that have significant exposure to UK like Tata Steel, Wockhardt, Tata Motors, he believes, could only see a longer phase of decline than local players. He advises accumulating on any decent dip in Tata Motors but feels Pharma is still avoidable for some more time.
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