HomeNewsBusinessStocksCheck out: What to buy in volatile market

Check out: What to buy in volatile market

Watch the interview of Shahina Mukadam, a Market Expert who shared her readings and outlook on specific stocks and sector & Nikhil Kothari, Director and Chief Financial Planner Etica Wealth management Pvt Ltd answered few personal finance queries.

August 18, 2015 / 15:58 IST
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Watch the interview of Shahina Mukadam, a Market Expert who shared her readings and outlook on specific stocks and sector & Nikhil Kothari, Director and Chief Financial Planner Etica Wealth management Pvt Ltd answered few personal finance queries.Below is the verbatim transcript of Shahina Mukadam's interview with CNBC-TV18:SBI For State Bank of India (SBI) in the shorter term there is some resistance around Rs 300 levels. I do think on can get a target of around Rs 330-345 in next six months to one year. One can look to make money on the stock. I believe there is going to be issue from SBI maybe a qualified institutional placement (QIP) maybe follow on public offer (FPO) in the next couple of months. It is one of the strongest banks in the public sector undertaking (PSU) space, very attractively valued currently at about 1.2 times book. So, the downside is limited from hereon. However, just for safety I would like to give a stoploss of about Rs 255. In case it goes below that then maybe one should exit and move out otherwise one can hold it.DCB Bank & SBI The investors can look at two banks. One is State Bank of India (SBI), which is in the public sector undertaking (PSU) side and another, a smaller one in the private sector is DCB Bank. If the investors can divide his/her portfolio into these two, it would give a good potential to maximise his/her returns. SBI is the largest bank in the PSU sector. It is one of the most covered and most recommended stocks today. Technically also it looks good. In the shorter term for SBI, if one is looking to book out his/her profits then one can look for a target close to around Rs 300 which is about Rs 295. If he holds it for a year then a target of about Rs 330 is absolutely likely. In terms of valuation, the bank is one of the cheapest; it is at the lowest end of its valuation parameters which it has been for a number of years. It is just about 1.2 times book on a consolidated basis and while the asset quality concerns remain but this could be some sort of a stabilisation and the downside for the stock from here is limited. One can hold it with a stoploss of about Rs 273.As far as DCB Bank is concerned, the results were muted given a flat bottomline growth but there were one time issues in terms of big tax chanse that they have seen with all the write-offs and tax finished, so going forward for the current year the tax rate will be much higher than we have seen in the last year. So to that extent yes, but in terms of asset quality the bank is stable, it has restructured its bad debts and it has got a manageable bad debt problem. In terms of valuation also it is quite attractive in the private bank sector. One can buy it with a short-term target of about Rs 142 but a slighter longer term holding, one can easily get Rs 150 which is the one year high. One can buy and keep a stoploss of about Rs 133 to be on the safer side.

first published: Aug 18, 2015 03:18 pm

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