"I would definitely like to start reducing my commitments on the long side. Yesterday, one saw approximately 55 lakh trades on the Nifty, with an average ticket size of almost Rs 25,000. That�s is not the kind of ticket size or the number of trades I would have wanted to see on a day where the markets closed off the intra-day lows. Buying commitment needs to step up sharply before one can go out and buy something."
On DLF and Unitech:
Both these counters are under pressure. One is definitely seeing good amount of short covering today. But I would feel comfortable buying DLF closer to Rs 450 or Rs 460.
On Ambuja Cement:
We are seeing a very spirited short covering rather than a conviction on the fresh buy side. I don�t think the process of bottom formation is over even in Ambuja. I would wait and watch.
On Ranbaxy, GSK Pharma, Glenmark:
Ranbaxy still has steam, though there might be sporadic bouts of profit taking. GSK Pharma could also, over a period of time, outperform the broader indices. Glenmark Pharma is looking attractive in the midcap space and this stock has places to go yet.
On Cairn, GAIL, Petronet LNG:
I would stick to energy and especially ENP stocks. If I get Cairn at lower levels of below Rs 270, I would bet my money. Petronet LNG is looking good closer to Rs 60. In case of GAIL, 5% to 7% lower from here would also become an attractive, oversold proposition on the short-term charts.
On Fortis:
It is definitely news-based and this momentum is likely to continue. The next 1-2 trading sessions should see exhaustion in the current trend. But for now if you are long you can roll your position over for the next day.
On Reliance:
The worst is not yet over for Reliance, unless it starts trading above Rs 2,360 levels. Till then, it is a fairly strong corrective bounce.
On HDFC:
HDFC is an investment and trading buy. Both HDFC Bank and HDFC have been hammered down in the last couple of trading sessions. The short and medium-term charts are fairly oversold at this point in time. Go ahead and buy whether it is a trading or an investment call.
Disclosure:
It is safe to assume that my clients and I may have an interest in the stocks/ sectors discussed.
On DLF:
Even at the current market price, DLF is trading at less than 10 P/E on a forward basis. I see value in this particular company and the entire realty proposition in this country.
Given the valuation of realty space, DLF, Unitech and Mahindra Lifespace are good investment proposition. In falling markets, due to nervous sentiment, one can accumulate these stocks gradually and build the portfolio for the next 2-3 years.
On Ambuja:
The Holcim management in the past indicated that they would be interested in buying this company completely from the market. I am not sure how much further up it can go. But I believe that the stock probably would set the range between Rs 80 to Rs 95 in this market and then probably take a call thereafter.
On Punj Lloyd, BHEL, L&T:
Punj Lloyd will be the first priority for me as far as investment portfolio is concerned. This company is promising to grow at around 40% plus rate of growth, at least for the next two years, as we see from the guidance given by the management.
Even in the capital goods space, players like BHEL and L&T are still at a higher valuation compared to the overall market valuation. But, going forward, with the growth that they are promising in the next two to three years and with the order book visibility that they have, such kind of companies would definitely demand some attention now and probably gradual accumulation will have to take place in the portfolio.
With falling market prices and nervous sentiment, it will give more advantage to long-term investors to buy such companies with a two-three year perspective at the current market levels.
On Cipla:
The player that is looking promising is Cipla because of the greater emphasis kept on the particular generic business in the last many years. Last year, Cipla restructured its entire business. New formulation units have gone onstream and probably the full stream effect will come into the current year and thereafter.
Also, they have created significant amounts of presence in the European markets for many of the generic products. Cipla should benefit out of the lot significantly in the coming days. It is too early to work out the numbers at this point. But they should see a reasonable growth of around 20% in the current year and thereafter. So, Cipla looks a little bit more interesting going forward in this space.
On DLF and Unitech:
Both these counters are under pressure. One is definitely seeing good amount of short covering today. But I would feel comfortable buying DLF closer to Rs 450 or Rs 460.
On Ambuja Cement:
We are seeing a very spirited short covering rather than a conviction on the fresh buy side. I don�t think the process of bottom formation is over even in Ambuja. I would wait and watch.
On Ranbaxy, GSK Pharma, Glenmark:
Ranbaxy still has steam, though there might be sporadic bouts of profit taking. GSK Pharma could also, over a period of time, outperform the broader indices. Glenmark Pharma is looking attractive in the midcap space and this stock has places to go yet.
On Cairn, GAIL, Petronet LNG:
I would stick to energy and especially ENP stocks. If I get Cairn at lower levels of below Rs 270, I would bet my money. Petronet LNG is looking good closer to Rs 60. In case of GAIL, 5% to 7% lower from here would also become an attractive, oversold proposition on the short-term charts.
On Fortis:
It is definitely news-based and this momentum is likely to continue. The next 1-2 trading sessions should see exhaustion in the current trend. But for now if you are long you can roll your position over for the next day.
On Reliance:
The worst is not yet over for Reliance, unless it starts trading above Rs 2,360 levels. Till then, it is a fairly strong corrective bounce.
On HDFC:
HDFC is an investment and trading buy. Both HDFC Bank and HDFC have been hammered down in the last couple of trading sessions. The short and medium-term charts are fairly oversold at this point in time. Go ahead and buy whether it is a trading or an investment call.
Disclosure:
It is safe to assume that my clients and I may have an interest in the stocks/ sectors discussed.
DLF, Unitech, Punj Lloyd and Cipla.
On DLF:
Even at the current market price, DLF is trading at less than 10 P/E on a forward basis. I see value in this particular company and the entire realty proposition in this country.
Given the valuation of realty space, DLF, Unitech and Mahindra Lifespace are good investment proposition. In falling markets, due to nervous sentiment, one can accumulate these stocks gradually and build the portfolio for the next 2-3 years.
On Ambuja:
The Holcim management in the past indicated that they would be interested in buying this company completely from the market. I am not sure how much further up it can go. But I believe that the stock probably would set the range between Rs 80 to Rs 95 in this market and then probably take a call thereafter.
On Punj Lloyd, BHEL, L&T:
Punj Lloyd will be the first priority for me as far as investment portfolio is concerned. This company is promising to grow at around 40% plus rate of growth, at least for the next two years, as we see from the guidance given by the management.
Even in the capital goods space, players like BHEL and L&T are still at a higher valuation compared to the overall market valuation. But, going forward, with the growth that they are promising in the next two to three years and with the order book visibility that they have, such kind of companies would definitely demand some attention now and probably gradual accumulation will have to take place in the portfolio.
With falling market prices and nervous sentiment, it will give more advantage to long-term investors to buy such companies with a two-three year perspective at the current market levels.
On Cipla:
The player that is looking promising is Cipla because of the greater emphasis kept on the particular generic business in the last many years. Last year, Cipla restructured its entire business. New formulation units have gone onstream and probably the full stream effect will come into the current year and thereafter.
Also, they have created significant amounts of presence in the European markets for many of the generic products. Cipla should benefit out of the lot significantly in the coming days. It is too early to work out the numbers at this point. But they should see a reasonable growth of around 20% in the current year and thereafter. So, Cipla looks a little bit more interesting going forward in this space.
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