Your Stocks: What to buy in volatile market

Watch the interview of Ashu Madan of Religare Securities and Hemen Kapadia of KRChoksey Securities who shared their readings and outlook on specific stocks and sector.

Ashu Madan of Religare SecuritiesHCL TechIf you are a long-term investor then there is no room for frustration. So, I think with that thought I would say three months is not a period for a stock like HCL Technologies because it is in a long consolidation zone, Rs 20-30 stoploss from this level, potential to go up by another Rs 50-60 beyond that right now I don’t see that much movement happening in the next three months as of now it looks like. So, instead of getting frustrated every time it is going to Rs 850 there is no doubt that markets has also supported. In the three months limited period, I don’t think so major upside is there. So, probably 5-7 percent return should get the opportunity and get out for a while and wait for some more time.Jaiprakash Associates In Jaiprakash Associates you can wait for the opportunity to sell. I would say that exit at first available opportunity; and move into something else or probably next investment. I don’t see anything happening in Jaiprakash Associates.State Bank of India State Bank of India (SBI) is an excellent buy because what happens was most of the people were holding PSU Banks and cutting their losses and somebody was buying. But all said and done PSU banks are under pressure led by State Bank of India (SBI). The pain will continue to haunt them for next couple of quarters or probably more as far as non performing assets (NPAs) are concerned. This bounce back is on account of various reasons - soothing statements, market recovering from the lows, expectation of the RBI rate cut, so all put together I think probably majority of bounces are already priced in. So, I would say book 50 percent right now and hold 50 percent probably closer to Rs 200 levels prior to the policy. I think that all PSU banks or most of the banks will toppish around RBI policy and probably from there in we could see kneejerk reaction on the downside. I would say in a staggered way one should keep booking the profit from the current levels itself. Hemen Kapadia of KRChoksey SecuritiesReliance Industries In Reliance Industries one should wait a bit along with the rest of the market, market has recovered but Reliance is also expected to recover. However, for safety sake one can keep a stoploss of Rs 1,005. The stock looks set for a bounce, I have a feeling that we could be heading towards Rs 1,045 in the near future and if it sustains above that even more, so hold with a stoploss of Rs 1,005.