At the end of the biggest quarterly loss since 2008, it is new beginning for the market in the new month. Though in the past eventful week, market notched 2% gains lead by IT shares that continued their rally at the....
At the end of the biggest quarterly loss since 2008, it is new beginning for the market in the new month. Though in the past eventful week, market notched 2% gains lead by IT shares that continued their rally at the back of a weak rupee, there is an irrefutable need to 'forget' the huge loss of 13% suffered between July and September.
Although experts say October historically has had a reputation for being a bear killer, a little advice can save the day! Chandan Taparia, derivatives analyst, retail research (equity) at Anand Rathi shares his expert call on various stocks queries posted through Moneycontrol.com's initiative 'Know Your Investment' (KYI) that can help find refuge in the hot-blooded street.
Below is the expert advice to all the questions you asked us on our Facebook page :
Q: Denish Farsanwala: Can one buy L&T at current level for a one year investment?
Taparia: L&T is trading at 26 months low levels, in last ten months the stock has been facing sustained selling pressure and corrected by more than 38% from 2200 to 1350 levels. The weakness is still there in the stock, so it may fall further by Rs 100-150. And, those levels would be quite attractive to invest for target of 1500 levels.
Papu Kalita: I bought Reliance Communication shares at Rs 102. Should I hold or exit right now?
Taparia: RComm has been moving downwards along with entire ADAG shares. It faces fresh selling pressure at every bounce and making lower low levels. If RComm fails to hold 70 levels then it may go down to 60 or 58 levels. It would be better to exit from stock in any short covering move around 78-80 levels and shift to other stock of telecom space like Bharti Airtel and Idea, which may outperform in near future.
Ranbir Kapoor: I have TCS at Rs 1038.40 per share. What should I do right now?
Taparia: IT stocks are showing some strength as compare to entire market. In the medium term, the stock is facing hurdle at around 1075 levels. Any move above 1075 would take to 1130-1150 levels. One should exit the position in loss, if TCS goes below 990 levels, it may go down further by 940-910 levels.
Fruitwala Suhas: What are your views on HCC, NHPC, TTL and TFL, from a long-term prospective?
Taparia: HCC is a beaten down stock and still in a major downtrend. It has made immediate base around 25 levels and now hovering at 30 levels. One can invest around 24-25 zone for target of Rs 41-43.
NHPC has been consolidating between 22 to 26 range since last eight consecutive months. Stock looks quite attractive for medium as well long term horizon for its potential target of 32-34 levels.
Manish Banga: Is it a good time to purchase the shares of Tata Motors and Yes Bank?
Taparia: Wait for a dip of 5-7% for Yes Bank, the levels of 240-250 would be the best price to trade for the target of 320 levels.
After the recent market fall, Tata Motors is holding the gains since last six weeks. It has strong medium term support around 135 levels. If it sustains above 165, then it may head towards 180-185 levels. It is better if you buy above 165-167 levels for an up move of 7-8%, with stop loss of 155 levels.
Rajesh Khemani: I have 50 UCO Bank shares at Rs 113.60. What should I do with them?
Taparia: The stock is in a major down trend and below 63, the selling pressure may continue towards 55 levels. The stock has already corrected by 50% from your buying levels, it is better if you hold for few more months and exit if it comes around 85-90 levels.
Pradeep Kumar Mukherjee: I have lost 40% of his invested money in shares of Aban, Tata Steel, 3i Infotech, Renuka Sugars, ISMT and REC. What would you suggest me to do now?
Taparia: Aban is consistently making lower low levels and we cannot find any major support where it can stop the down move. It is now trading around 350 levels and it doesn’t cross 420 levels, it would be very difficult to comment on the falling knife. If moves above 420 then we can hope for a short covering move till 500 levels.
Tata Steel is facing supply pressure along with all metal stocks. It may correct till 385-380 levels, where one can average out for a bounce of 7-8%.
REC has corrected from 400 to 165 levels in last 12 months. It has now made strong base around 162-165 area. The stock looks attractive in terms of risk reward ratio, so one can average out here for an up move till 200 levels.
For Renuka Sugars, if one manages to hold 50 levels then it may head towards 75 levels.
3Iinfotech has set to test its previous bottom of 25 levels, if sustains here for few days then it may move towards 35 levels.
Pradeep Sagar: Is Hexaware expected to post good Q2 results and if so, can we see it above levels of Rs 95?
Taparia:Hexaware looks attractive in IT space, it has seen better rollovers and open interest activity in derivatives segment. If it manages to hold 80 levels and Q2 results favours the sentiment then the stock can test 95 or even higher levels.....back
At the end of the biggest quarterly loss since 2008, it is new beginning for the market in the new month. Though in the past eventful week, market notched 2% gains lead by IT shares that continued their rally at the back of a weak rupee, there is an irrefutable need to 'forget' the huge loss of 13% suffered between July and September.
Although experts say October historically has had a reputation for being a bear killer, a little advice can save the day! Chandan Taparia, derivatives analyst, retail research (equity) at Anand Rathi shares his expert call on various stocks queries posted through Moneycontrol.com's initiative 'Know Your Investment' (KYI) that can help find refuge in the hot-blooded street.
Below is the expert advice to all the questions you asked us on our Facebook page :
Q: Denish Farsanwala: Can one buy L&T at current level for a one year investment?
Taparia: L&T is trading at 26 months low levels, in last ten months the stock has been facing sustained selling pressure and corrected by more than 38% from 2200 to 1350 levels. The weakness is still there in the stock, so it may fall further by Rs 100-150. And, those levels would be quite attractive to invest for target of 1500 levels.
Papu Kalita: I bought Reliance Communication shares at Rs 102. Should I hold or exit right now?
Taparia: RComm has been moving downwards along with entire ADAG shares. It faces fresh selling pressure at every bounce and making lower low levels. If RComm fails to hold 70 levels then it may go down to 60 or 58 levels. It would be better to exit from stock in any short covering move around 78-80 levels and shift to other stock of telecom space like Bharti Airtel and Idea, which may outperform in near future.
Ranbir Kapoor: I have TCS at Rs 1038.40 per share. What should I do right now?
Taparia: IT stocks are showing some strength as compare to entire market. In the medium term, the stock is facing hurdle at around 1075 levels. Any move above 1075 would take to 1130-1150 levels. One should exit the position in loss, if TCS goes below 990 levels, it may go down further by 940-910 levels.
Fruitwala Suhas: What are your views on HCC, NHPC, TTL and TFL, from a long-term prospective?
Taparia: HCC is a beaten down stock and still in a major downtrend. It has made immediate base around 25 levels and now hovering at 30 levels. One can invest around 24-25 zone for target of Rs 41-43.
NHPC has been consolidating between 22 to 26 range since last eight consecutive months. Stock looks quite attractive for medium as well long term horizon for its potential target of 32-34 levels.
Manish Banga: Is it a good time to purchase the shares of Tata Motors and Yes Bank?
Taparia: Wait for a dip of 5-7% for Yes Bank, the levels of 240-250 would be the best price to trade for the target of 320 levels.
After the recent market fall, Tata Motors is holding the gains since last six weeks. It has strong medium term support around 135 levels. If it sustains above 165, then it may head towards 180-185 levels. It is better if you buy above 165-167 levels for an up move of 7-8%, with stop loss of 155 levels.
Rajesh Khemani: I have 50 UCO Bank shares at Rs 113.60. What should I do with them?
Taparia: The stock is in a major down trend and below 63, the selling pressure may continue towards 55 levels. The stock has already corrected by 50% from your buying levels, it is better if you hold for few more months and exit if it comes around 85-90 levels.
Pradeep Kumar Mukherjee: I have lost 40% of his invested money in shares of Aban, Tata Steel, 3i Infotech, Renuka Sugars, ISMT and REC. What would you suggest me to do now?
Taparia: Aban is consistently making lower low levels and we cannot find any major support where it can stop the down move. It is now trading around 350 levels and it doesn’t cross 420 levels, it would be very difficult to comment on the falling knife. If moves above 420 then we can hope for a short covering move till 500 levels.
Tata Steel is facing supply pressure along with all metal stocks. It may correct till 385-380 levels, where one can average out for a bounce of 7-8%.
REC has corrected from 400 to 165 levels in last 12 months. It has now made strong base around 162-165 area. The stock looks attractive in terms of risk reward ratio, so one can average out here for an up move till 200 levels.
For Renuka Sugars, if one manages to hold 50 levels then it may head towards 75 levels.
3Iinfotech has set to test its previous bottom of 25 levels, if sustains here for few days then it may move towards 35 levels.
Pradeep Sagar: Is Hexaware expected to post good Q2 results and if so, can we see it above levels of Rs 95?
Taparia:Hexaware looks attractive in IT space, it has seen better rollovers and open interest activity in derivatives segment. If it manages to hold 80 levels and Q2 results favours the sentiment then the stock can test 95 or even higher levels.....back