As Indian market is looking for some more strength, experts feel some fireworks are expected by Diwali. Some experts even see the Nifty hitting 6000 by the year-end or by Diwali. However, the market has been largely rangebound this week.
The 30-share BSE Sensex shed as much as 180 points intraday, before closing with loss of 109.62 points at 18,682.31. Meanwhile, the 50-share NSE Nifty dropped 34.45 points to end at 5,684.25, which has been in a tight range since it touched the 5800 level.
Moneycontrol gets Rakesh Goyal, Senior Vice President-Bonanza Portfolioto answer some of queries investors asked us on our Facebook page. So, here is some trading advice by for next week.
Below is Goyal's response.
Sandeep Rao: Can you suggest stocks for one-year investment?
A: LIC Housing Finance is in long term uptrend and have corrected to decent levels. It can be bought for a one-year perspective. Its financials are also supportive particularly studying last five years trend. FMCG stocks have also outperformed the benchmark indices and may be bought in dips, like ITC, HUL and Dabur. Among the banking stocks, Indusind Bank, ICICI Bank and Axis Bank can be bought for long term.
Kiran Pratapsinh Kadam: Can I buy Reliance Industries at current levels?
A: Reliance Q2FY13 results have been disappointing and have led to the recent fall. It has support near 760 levels. Buying near support levels is likely to give returns in near term.
Harsimran Singh: What is your view on Steel Authority of India (SAIL)?
A: SAIL is showing weak trend in long term. Steel sector in general is also showing weakness due to sluggish economy. My advise is buying should be deferred for now.
Manan Maheshwari: What about State Bank of India?
A: SBI's NPA have been a matter of concern in the last quarterly results. This may also continue in this quarter and hence post Q2 results, if it disappoints the market, selling may be seen. Fresh buying should be considered only above 2365 levels or in dips near 2100-2050 levels.
Manjunath Ramachandra: Is Bharti Airtel a 'buy' now?
A: Bharti Airtel has been seeing a decline in subscribers since last 10 years which is not a good indicator for growth. Along with this, telecom sector is impacted by government policies. The recent one being imposing a one-time fee on mobile operators holding spectrum beyond 6.2 MHz. Technically too, buying may be seen only above 285 levels.
Chandrayee Sarkar: What is your one-year view on HDFC Bank?
A: With consistent fundamental performance by the bank, we feel it can reach target of 750 in one year.
Shramnesh Jain: What is your three-month view on Jaiprakash Associates and Tata Motors?
A: JP Associate's Q1FY13 results had not impressed the market. Particularly the decline in sales volume had affected the net profits. Technically it is showing strength, however, upside seems to be limited till 100 level. Considering the slow pace in economy Q2 results are also likely to be impacted. Tatamotors also the same case. It had seen decline in sales volumes in Q1FY13 and profit margins were also hit. For both stocks , we recommend caution in medium term.
Devabrata Patra: Can I buy Reliance Capital at current price?
A: Yes it can be bought at current levels, for likely target of Rs 860. Keep strict stoploss below Rs 780.
Sweta Das: What is your call on Axis Bank?
A: It can give good returns in medium-to-long term. Likely target is Rs 1320-1350.
Alap Shah: Should I buy Educom now?
A: The stock is facing continuing selling pressure on upsides. Buying is not recommended at current levels.
Jyoti Pahadwa: What about MindTree?
A: Mindtree has shown more than double growth in net profits in Q1FY13 and consistent growth in sales volumes too over the quarters.It can be bought for long term perspective.
Kashish Kumar: What is your view on PTC India Financial Services?
A: Showing weakness in long term. It is not recommended at current levels.
Shafique Sonu: What about Lanco Infratech?
A: Infra sector has been underperforming for quite some time. Avoid recommended in the stock.
Prachi Sharma: What is your call on Max India?
A: The stock is showing strength and is likely to give good returns in near-to-medium term. It has a likely target of Rs 265 in medium term.
Vineet Kalra: Is 3i Infotech a 'buy' now?
A: Continuous selling pressure in the scrip. Buying is not recommended at current levels.
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