Your Stocks is a daily show where market experts answer your specific stock related queries.
In July 18 edition of Your Stocks, Ashu Madan of Religare Securities and Mitessh Thakkar of mitesshthakkar.com, answer your queries on investments in the stock market.
Chanda Bisht writes to us from New Delhi. She wants to invest Rs 30,000 in UltraTech Cement for long term and wants to know the right time to enter the market?
Madan: The largest company, but I would say results were good, past performances also good backed by some restructuring on cost front. But again, the crude price is rising, the coke price is rising, so I would say that though, everything looks good, the results would be good. But one should invest at a lower levels, not at these levels, even if somebody has to buy. Buy at a correction, not at current levels. Though, I would say nothing wrong and companies fundamentals are supportive, but valuations I feel that at these levels, one should wait be discipline, not to rush or probably there is no urgency to invest at these levels. I would say, everything looks positive and stable, but price wise, one should wait for a lower level to come in and then invest.
Thakkar: For me somebody who is looking to invest, I would look at two medium term and long term support zones. They are at about Rs 3,700 and at about Rs 3,200 respectively. So, anything closer to about Rs 3,700 should be good levels to start accumulating. Buy about 30-40 percent, there you get another 2-3 percent dip. Keep on adding that and I don’t think it will break Rs 3,200. So, while the stock has kind of made a short-term top and we had a correction, the stock is going to some kind of consolidation or any few days of price decline would be a good entry opportunity starting from Rs 3,750-3,700 as your first level to enter and then you keep entering on any 50-100 point kind of decline and he should be able to complete the quantity closer to about Rs 3,600-3,500 zone and that should be good entry point overall.
SK Sachdeva writes to us from New Delhi. He holds 50 shares of Bandhan Bank since three months. He is a short-term investor and wants to know whether to hold or sell?
Thakkar: This is one stock, where the chart still looks pretty good to me and the upfront is still steady. I would suggest revising the stop loss at Rs 540, looking for the next target as Rs 660 and even there if he chooses to hold on, he can take a fresh call over here.
Madan: The return ratios of the banks are good, the overall performance is good and the growth is good. But the scale is still not too broad to judge too much. I would say that it looks positive hold, but I think valuations also look reasonably good considering the size of the bank. I would have a cautiously positive view. I am not too gung-ho on the stock. It looks positive, but it will have a lower beta probably more long term kind of a play, but a stable play.
Roopali Singh writes to us from Lucknow. She holds 55 shares of Mindtree at Rs 940 since three months. She is a medium-term investor and wants to know whether to hold or sell.
Thakkar: I would believe so. While the stock has kind of stalled since April, but I think on the longer term charts, no damage has been done. I think the stock will eventually make higher highs. I would suggest trailing the stop loss just below cost at Rs 900. I think Rs 1,350-1,400 could be a good target if somebody is looking out six month plus kind of horizon.
Madan: I think overall information technology is doing good. For Mindtree, the numbers are good, last year performance was also good. However, I somehow feel that it is fairly priced. So either one has to have a different long term view, otherwise immediate short term, I would not think that the major gains are going to come. So as a disciplined investor, one can book profits also. Wait for lower levels, if he wants to renter Mindtree or probably can hold. So, it is a mix of booking profit and hold kind of thing, because I personally feel that the valuations are somehow -- it is fairly valued.
Follow stock recommendations by Mitessh Thakkar here: https://www.cnbctv18.com/author/mitessh-mthakkar-111/Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.