Your Stocks: Top chart picks by market experts

In long term if one is willing to hold State Bank of India (SBI) for couple of years I think you can get a target for Rs 3,200. Because State Bank of India is a play on the economic growth of the country and given that we are expecting the economy to grow at least by 6 percent for the next financial year and probably 6.5-7 percent for the year thereafter, State Bank of India also participate in that growth through increases its loans and advances as well as net interest margins.

I think non-performing assets (NPAs) have probably played out for State Bank of India and the worst is over relating to the stressed assets. So we are probably bottoming out on the NPAs front and this should be a good time to stay invested or may be if the bank does correct further then one can even look at accumulating at lower level.

Venus Remedies

Venus Remedies is one of those midcap pharma companies which have been growing at a very good pace. Consequently the share price also has risen significantly over the last couple of months. But like many of the smaller companies you know when they expand very quickly you see a lot of pressure on their balance sheet.

Recently CRISIL has downgraded them to default because they have been unable to make some payments on their loans and that has put little bit of stress on their balance sheet. So given that the cycle until this issue is resolved you’re likely to see a little bit more downside because there could be further unwinding and this default can actually create cash flow problems because the company starts to move its working capital towards payment of loans, which is diverting short term uses of funds to longer term repayment and that could put the company into the severe cash flow problems.

At this point of time its better to wait till the numbers come out for the next quarter and then you have an idea what the balance sheet and how it is and then you can take a better call. At this point of time it may be worthwhile if one is a short term trader to cash out.

Vishal Malkan, CMT at malkansview.com

Bank of Baroda

If one is looking for a medium to long term then definitely Bank of Baroda is a good stock and one can hold on to it for a while and he/she can see good returns on that may be Rs 1,000 plus rates can be seen. But for the time being as we see today’s correction, we can expect Bank of Baroda to retrace back to Rs 890-880, which could be again a good buying level.

Their might be some kind of consolidation in next few days in the banking sectors as we have seen a good run up in the last few days. So one should hold on for a long period of time with a stoploss of Rs 830.