Manoj Sachdeva, Research Head of Hem Securities teams up with Moneycontrol.com to answer investor queries.
Below are Sachdeva's views on stocks. Also, check out our FB page for more on Know Your Investment: HERE
Jani Basha: What is your call on market next week?
A: Technically speaking, daily, weekly & monthly charts of the Nifty looks weak for the coming week. In the weekly charts, nifty is continuously making the lower high and lower lows & has broken the major support level of 5550 and closed below this level. Therefore I am bearish on Nifty at current level. Nifty may take the support @5400 level.If Nifty will not able to hold this level then it can further drag down to the level of 5230 in the coming time.
Alkab Ahamad: What is your view on IPCA Lab?
A: Ipca Laboratories has reported results for third quarter ended December 31, 2012.The company has reported 37.48% rise in its net profit at Rs 87.89 crore for the quarter as compared to Rs 63.93 crore for the same quarter in the previous year. Total income of the company has increased by 13.92% at Rs 704.99 crore for quarter under review as compared to Rs 618.86 crore for the quarter ended December 31, 2011.
Technically speaking, in weekly chart IPCA lab is looking weak as it has made the double top @540 then broke down to the level of 490.Hence it is still looking weak to the level of 440.So one can sell the stock with the stop loss of 520 and for the target of 440 in this week.
Harshad Sharma: What is your view on Assam Company?
A: Assam Company India has been appointed as the sole operator of Amguri oil and gases filed in Assam by government of India. Amguri filed is already an establish oil and gases producing field with high quality Reserve of crude oil and rich gas having properties of LPG and oil condensate. The company is now ready to commence the production of oil and gas.
Technically speaking, Assam company is moving in the range of Rs 5-10 from last 2-3 months.If it breaks the level of Rs 5 then it can further move down to the level of Rs 3.Hence one can wait at present level to invest in the stock .
Priscilla Grihapathy: Which sector do we look to now in the immediate 3 to 4 months?
A: Sectors like FMCG and Pharamceutical are looking defensive space to deploy the funds for 3-4 months time horizon.
Jigar Dedhia: Do you think MT Educare is good stock for long term holding ?
A: MT Educare has entered into shareholders agreement with 'Lakshya' and its shareholders on April 01, 2013 with respect to acquire 51% stake in Lakshya Forum for Competitions, a leading North India based IIT Entrance teaching institute.
One can hold the stock with the stop loss of 68 and target of 105.It it break the level of 68 then one can exit from the stock as it may come down to the level of 46.
Ram Bhandare: Which sector looks bottomed out & lucrative to invest? Or there is still more downfall foreseen overall ?
A: Presently one should refrain from buying in any sector as markets are looking more down.
Mohiddin Moodbidri: What is your view on SBI and BHEL?
A: State Bank of India (SBI) is planning to raise $1 billion through overseas bond market with a benchmark issue. The initial pricing of the fixed rate, five-year senior unsecured bond is fixed at US treasury plus 275 basis points.Technically speaking, on the weekly chart, SBI is looking weak as it made lower high and lower low in last 3 months .More weakness is expected in the stock in coming month to the level of 1800.
BHEL has inked pact with Mitsubishi Heavy Industries, in order to gain Rs 1,500 crore of additional business.
As per the agreement BHEL will get technology from Japanese company for taking out the harmful sulphurous compounds from the gases that escape out of thermal power plants.
Technically speaking, BHEL is in major downward trend as it has broken the major support level of 196.It may come down to the level of 153 & then 110 in the coming 2-3 months.So , one can sell the stock with the stop loss of 196 and target of 150 & 110.
Shree Shinde: What is your call on Delta Corp?
A: Route One Fund I LP has purchased 2,917,420 shares of India's only listed gaming and hospitality company, Delta Corp in an open market transaction. The shares were bought at an average price of Rs 57.94 a piece on National Stock Exchange (NSE) on April 10, 2013
Technically speaking, after 3 month of downfall the stock recovers from the level of 38,now it is trading at the level of 61.Hence one can hold the stock with the stop loss of 55 and the target of Rs 75 for the time frame of 4-6 months.
Satyendra Savant: What is your call on oil & gas sector? Is MRPL a good long-term investment?
A: Working towards the goal of self-reliance in O&G sector, the Indian Government is also looking to build storage capacity for about 18 MT of crude by 2020. The first phase of this strategic stockpile--5.33 MT--will be commissioned by April 2014.Indian Strategic Petroleum Reserves Ltd (ISPRL), a special purpose vehicle owned by the Oil Industry Development Board (OIDB), is now building storages in underground rock caverns at Visakhapatnam (1.33 MT), Mangalore (1.5 MT) and Padur, Kerala (2.5 MT). With this, India will become one of the first countries in Asia to have storage capacity in underground rock caverns.The Indian oil ministry has set targets to reduce energy import dependency from current 80 per cent to 50 per cent by 2020. The Government believes that it can be further reduced by 75 per cent in 2025 and we can achieve self sufficiency by 2030.Hence Oil & Gas Sector,is looking attractive for long term perspective.
MRPL is planning to expand into a 21 MMTPA refinery with a pet coke gasification unit and a linear alkyl benzene unit. The company has also decided to diversify into petrochemicals. In MRPL Phase III, a polypropylene plant is getting ready, while a joint venture company, ONGC-Mangalore Petrochemicals, is off to a running start and is expected to commission its aromatic plant by September 2013. However,one should wait at current level to invest in MRPL . It the stock is available at the level of 30 then one can make long term entry in the stock.
Jeevan Karvikar: What is your call on the FMCG and pharma space?
A: India's pharmaceutical sector is expected to touch US$ 74 billion in sales by 2020 from the current US$ 11 billion, according to a report.The Indian pharmaceutical market is expected to grow at a compound annual growth rate (CAGR) of 14-17 per cent over 2012-16. India is now among the top five pharmaceutical emerging markets.The outlook on the Indian pharmaceutical industry remains favourable, according to a report. Domestic formulation market stood at Rs 58,300 crore (US$ 10.88 billion) and has been ranked third in terms of volume and tenth in terms of value, globally.Presently we are bullish on Pharmaceutical sector and one can make investment at current level for the time horizon of 8-12 months.
Among pharma space, companies like Lupin ,Cipla, Sun Pharam and Torrent Pharma are looking attractive for long term investment.
Indian consumers are enjoying high attention and acknowledgment from domestic as well as international marketers as India's consumer markets are charting new heights in terms of growth and development. In a bid to grab bigger market share and consumer base, Indian marketers are devising strategies to integrate their advertising & marketing campaigns across multiple channels. Organisations are readying themselves to adopt mobile marketing techniques in a big way, while they are investing heavily in social marketing. Industry research shows that Email marketing continues to be the leader in terms of lead generation and will see stronger.Presently we are bullish on FMCG sector and one can make investment at current level for the time horizon of 8-12 months. In FMCG space companies like Britannia, ITC , Marico are looking attractive for long term investment.
Ravish Patil: What is view on Infosys post Q4 results?
A: Infosys reported growth of 14.00% in the revenue at Rs. 93290.00 millions in the March 2013 quarter as compared to Rs. 81830.00 millions during year-ago period. A slender decline of -16.46% was recorded to Rs. 23050.00 millions from Rs. 27590.00 millions in the corresponding previous quarter.The Operating Profit of the company witnessed a decrease to 32780.00 millions from 38930.00 millions.
Technically speaking, Infosys is looking weak and may fall down to the level of 2000 and thereafter Rs 1800 in 2-3 months time period.
Theresa Ignatius: Do you think banking sector will do well this year?
A: Mr P Chidambaram, the Finance Minister, has indicated that there is a rising demand for opening bank branches in Indian towns and villages. More bank branches mean more mobilisations of savings and higher investments in the economy. On an average, about 6, 000 branches were being opened every year in the last 2-3 years and there's a plan to open more of them in 2013-14. Moreover, with the Parliament passing the much awaited Banking Laws Amendment Bill recently, the face of the Indian banking industry is set to get a lift in the coming years as the passage of the bill has paved the way for more banks. This will not only create a healthy competition among the players in the industry, but will also escalate the style of operation and technology.
However, presently the threat of increasing NPA in balance sheet of banks may expose banking stocks to the downward rally. Hence one can wait at current level to invest in banking stocks for this year.