VP-IIFL Private Wealth Management at India Infoline is of the view that one can buy Sesa Goa.
Jain told CNBC-TV18, "We have seen Sesa Goa quite buoyant despite the fall in the world markets or the metal prices of the last two weeks. Despite the last three days of our market, its consistently stayed over its ten day moving average and its giving a breakout and that too a far larger kind of a level in the medium term. You will probably see somewhere around Rs 320 in this and it's a good stock to buy. In the short term it can go upto Rs 256-257, in the long term I see this as one of the leading metal stocks, which has continued to kind of outperform."
Tuesday, August 11, 2009
Buy cement stocks at lower level: R Shah
Angel Broking is of the view that one can buy cement stocks at lower level.
Shah told CNBC-TV18, "Cement companies have put in very good numbers for the June quarter actually and surprised most of the analysts. They are quoting at really interesting levels but a poor monsoons, so shortage of water is going to be there and we are not going to feel that right now. But probably next year in the month of March-April-May we could see a construction activity taking a hit because I have never seen such kind of situation – I mean 11 days of August have passed and there is absolutely no rain in a place like Mumbai, so I have never seen this kind of August in my entire lifespan of 39 years. The impact is going to be there, so I would rather be cautious and may be wait for lower levels to get into the market and cement stocks."
Shah told CNBC-TV18, "Cement companies have put in very good numbers for the June quarter actually and surprised most of the analysts. They are quoting at really interesting levels but a poor monsoons, so shortage of water is going to be there and we are not going to feel that right now. But probably next year in the month of March-April-May we could see a construction activity taking a hit because I have never seen such kind of situation – I mean 11 days of August have passed and there is absolutely no rain in a place like Mumbai, so I have never seen this kind of August in my entire lifespan of 39 years. The impact is going to be there, so I would rather be cautious and may be wait for lower levels to get into the market and cement stocks."
Experts see 10% Sensex fall; recommend stocks to buy!!!
The markets snapped their three-day losing streak. The indices managed to shrug off a weak start but remained volatile through out the session. The markets survived a late sell-off and the Nifty shut shop at 4,471, up 34 points, while the Sensex ended at 15,074 up 65 points. Auto, realty, and metals were the star sectors clocking gains of up to 3%. The pullback was on muted volumes with the total turnover hovering around the Rs 85,000 crore.
Rajat Bose of rajatkbose.com says the Nifty has found an intermediate bottom at 4,400 today. "4,420-4,387 has been a good support level. Today is the first day of the recovery, so volumes are not there. Volumes would come once 4,516-4,520 range is crossed. But bulls will get back the initiative only after 4,585 is crossed. That still is a tall order.
Ajay Loganadan, Head-Investment Advisory Group, HSBC Private Banking, feels after a significant rally, India should really move sideways or consolidate over the next few months. "This has been driven with significant amount of liquidity." In the short-term, he sees liquidity, global newsflow, and fund flows coming into India impacting markets.
According to him, there are strong fundamentals to keep our markets from really falling back to March or 8,000-9,000 levels. "Those look highly unlikely, but could we see another 2,000 points cut on the Sensex. That is something we could expect given this newsflow on the monsoons. On a daily basis, there seems to be resistance coming up at higher levels. You are getting very sharp sell-offs at the later part of the day which could be trading but could also be institutions sitting in Europe who decide on what they are going to do in India."
Rajen Shah, CIO, Angel Broking, is a bit cautious on the markets at present. "We strongly believe that poor monsoons will have a significant impact though many refuse to believe that already 161 districts have been declared drought hit. That will have a significant impact without taking into account this Swine Flu outbreak. May be we could see about 10% downside and could go down to about 13,700-14,000 kind of levels. We have just corrected by about 800 points from the top, and need to correct a little more than what we have corrected. So, another 1,000 points from here should not be difficult in coming down from those levels." Shah says investors could think of getting into the market around 13,500-14,000 levels.
Monsoon Impact:
Loganadan said a 2% output reduction in agriculture, actually impacts our GDP by only 1%. "Given the fiscal stimulus policies and the policy measures that have been announced, which are largely geared towards the rural sector, we believe that should really offset the negative impact of monsoons."
Sector Watch:
Shah says he would invest in companies which are into agri-commodities like sugar or tea. "Farmers who make money from the high prices of agri-commodities may go in for aggressive buying of fertilisers, pesticides, and agro chemicals. Hence, I would certainly be very bullish on anything related with agriculture. Also, I would get into some irrigation companies, which are into manufacturing of PVC pipes because only 30-35% of the total cultivable land in the country is irrigated. Looking at what has happened this year, a number of initiatives would go towards irrigating the farm fields in a very aggressive manner over the next few months and years."
From agri-commodities, he likes McLeod Russell, Bayer Cropscience, Rallis India, and ITC. "McLeod Russell is showing a lot of strength. It is quoting hardly about 10-11 times earnings and tea prices are going pretty firm. Bayer Cropscience and Rallies India are quoting a P/E of 10. I would certainly not hesitate to get into companies like ITC which are into rural retailing at about Rs 200-210 kind of levels."
He is also bullish on Finolex Industries from the irrigation pack. "Finolex Industries is quoting just about 5 times compared to Jain Irrigation which is quoting about 20 times. This company has also got a subsidiary joint venture with an Israeli company which is significant player in the drip irrigation and the micro irrigation business."
Rajat Bose of rajatkbose.com says the Nifty has found an intermediate bottom at 4,400 today. "4,420-4,387 has been a good support level. Today is the first day of the recovery, so volumes are not there. Volumes would come once 4,516-4,520 range is crossed. But bulls will get back the initiative only after 4,585 is crossed. That still is a tall order.
Ajay Loganadan, Head-Investment Advisory Group, HSBC Private Banking, feels after a significant rally, India should really move sideways or consolidate over the next few months. "This has been driven with significant amount of liquidity." In the short-term, he sees liquidity, global newsflow, and fund flows coming into India impacting markets.
According to him, there are strong fundamentals to keep our markets from really falling back to March or 8,000-9,000 levels. "Those look highly unlikely, but could we see another 2,000 points cut on the Sensex. That is something we could expect given this newsflow on the monsoons. On a daily basis, there seems to be resistance coming up at higher levels. You are getting very sharp sell-offs at the later part of the day which could be trading but could also be institutions sitting in Europe who decide on what they are going to do in India."
Rajen Shah, CIO, Angel Broking, is a bit cautious on the markets at present. "We strongly believe that poor monsoons will have a significant impact though many refuse to believe that already 161 districts have been declared drought hit. That will have a significant impact without taking into account this Swine Flu outbreak. May be we could see about 10% downside and could go down to about 13,700-14,000 kind of levels. We have just corrected by about 800 points from the top, and need to correct a little more than what we have corrected. So, another 1,000 points from here should not be difficult in coming down from those levels." Shah says investors could think of getting into the market around 13,500-14,000 levels.
Monsoon Impact:
Loganadan said a 2% output reduction in agriculture, actually impacts our GDP by only 1%. "Given the fiscal stimulus policies and the policy measures that have been announced, which are largely geared towards the rural sector, we believe that should really offset the negative impact of monsoons."
Sector Watch:
Shah says he would invest in companies which are into agri-commodities like sugar or tea. "Farmers who make money from the high prices of agri-commodities may go in for aggressive buying of fertilisers, pesticides, and agro chemicals. Hence, I would certainly be very bullish on anything related with agriculture. Also, I would get into some irrigation companies, which are into manufacturing of PVC pipes because only 30-35% of the total cultivable land in the country is irrigated. Looking at what has happened this year, a number of initiatives would go towards irrigating the farm fields in a very aggressive manner over the next few months and years."
From agri-commodities, he likes McLeod Russell, Bayer Cropscience, Rallis India, and ITC. "McLeod Russell is showing a lot of strength. It is quoting hardly about 10-11 times earnings and tea prices are going pretty firm. Bayer Cropscience and Rallies India are quoting a P/E of 10. I would certainly not hesitate to get into companies like ITC which are into rural retailing at about Rs 200-210 kind of levels."
He is also bullish on Finolex Industries from the irrigation pack. "Finolex Industries is quoting just about 5 times compared to Jain Irrigation which is quoting about 20 times. This company has also got a subsidiary joint venture with an Israeli company which is significant player in the drip irrigation and the micro irrigation business."
Source: Moneycontrol
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