Check out: 2 good entry-point sectors & why USL may correct

In an interview to CNBC-TV18, SP Tulsian of sptulsian.com recommends buying cement stocks and a few real estate stocks as he belives the current prices are a good entry price for them.

Also read: Bull's Eye: Buy HDIL, Sun TV, Shasun Pharma, Bata Below is the edited transcript of the interview. Q: There has been some reports that cement prices have been slipping this last month,  about Rs 20 a bag. Is that what is affecting stocks?  How would you approach cement after the rally that they had a short while back?
A: That is right. Market is very sensitive. Whenever we hear this kind of news; that in some parts of the country the prices have gone up, we see the mild correction coming in. However, I am not keeping my negative stance because if you see the run-up having taken place on the cement stocks, the profit booking was very much obvious. Many of the midcap cement stocks have moved up by about 25-30 percent in last couple of months or so.
So obviously, the profit booking has been used by taking this as a trigger of softening the price. Sometimes, there is a slight dip in the take-off of the cement. However, if you take the scenario upto June 2013, I do not think there will be any kind of shortage or any kind of apprehensions on the take off of the cement. Infact, the construction activities are also picking up quite well and that consumes a significant part. So overall, I am keeping the positive stance. Maybe the dip should be used as an entry point by the traders as well as by the investors.

_PAGEBREAK_ Q: Where do you see the United Spirits stock stabilising at?
A: The stock has no reason to move beyond Rs 1,800 and that is what has happened. I do not see any reason for the stock to fall below Rs 1,700 as well. Maybe the volatility will remain between the range of Rs 1,700 to Rs 1,800 and if it remains within this range for quite sometime, maybe for a week or so, then the stock will also become little dull.
People may not find it too interesting because there has been lot of euphoria that this stock has got vastly re-rated. We have also seen the research reports upgrading the stock price to as high as Rs 2,000, but that should be taken more on a longer horizon of maybe about six to eight months. I am keeping my cautious stance on the move also, because the open offer is not going to give any shares to Diageo at Rs 1,440.
One has to wait to check what will be the open offer price, what will be the preferential allotment status, whether the preferential allotment of 10 percent also gets approved by the shareholders or not. So, you have to revisit the whole structuring of the deal and see whether that can give 51 percent effective control to Diageo post this preferential allotment. If any kind of negative starts coming in on that front, I will not be surprised to see the stock correcting to the level of Rs 1,600 maybe.
So, one should keep a cap of maybe Rs 1,800 or so and little cautious stance to wait and see the developments on the acquisition front or the effective stake control front by the Diageo in the company. Q: The moves in the real estate space have been pretty sharp both on the upside as well as on the downside. Within this volatile movement, is there any stock that you would pick up for an investment perspective?
A: Two stocks come to my mind ; HDIL and Peninsula Land. We have seen huge corrections having taken place in Peninsula Land. The stock has corrected to about maybe Rs 65-66 and I think Rs 60-62 makes for a good entry point. The same thing holds good for HDIL also, because going forward, I am quite optimistic on their H2 performance because we will be seeing a good amount of Transfer of Development Rights (TDR) sales by the company, which will eventually bring down or reduce their debts.
The same thing holds good for Peninsula Land also, because they will be starting their 19 acre plot land, which they acquired from Bhattars in Shivdi and that will be an addition.

Apart from that, they will be selling their premises in the Peninsula Business Park also.
These two stocks look good as of now for making an entry from maybe a couple of months point of view.