Ask Mint | On Investments

Vipul Verma

Dinesh, Sampath Kumar

You must hold this stock as it is consistently moving up. Technical analysis of the stock suggests that it could touch levels of Rs228-232 in the short-term with a stop loss of Rs188 a share. From a long-term perspective, the target would be Rs268 with a stop loss of Rs174.

I have invested in the following stocks: Reliance Petroleum Ltd 200 shares at Rs98. Edelweiss Capital Ltd eight shares at Rs825. Should I hold them for the long term, say two years?

Saud

Reliance Petroleum Ltd is an excellent bet for long term and has a potential to give around 40% return from current levels. Edelweiss Capital Ltd is also a good long-term stock, since it has aggressive plans for future. As you are a long-term investor, so holding these stocks would be a better idea. However, if you get target price of Rs317 for Reliance Petroleum or Rs1,922 for Edelweiss Capital earlier, then you may review your portfolio.

I want to invest in SBI Magnum Tax Gain open-ended ELSS mutual fund. Is it the right time to invest considering the fact that it is likely to be closed and dividend has still not been declared?

Preetam Nath

SBI Magnum Tax Gain is a good mutual ELSS scheme, which has good potential looking forward. Since the top picks of this scheme include many good stocks, which have moved the markets recently, such as Reliance Industries Ltd, Jaiprakash Associates Ltd, Welspun Gujarat Stahl Rohren Ltd, Reliance Communications Ltd, Larsen and Toubro Ltd, Infrastructure Development Finance Co. Ltd, Oil and Natural Gas Corp. Ltd and State Bank of India.

So, it is likely to post good returns in the coming months. As far as the timing of investment is concerned, I think the markets would continue to rise in the first quarter despite worries about the US economy. However, the perfect timing would be after watching the initial few results, which would largely indicate how the earnings season would likely remain.

Should I sell or hold the Pochiraju Industries Ltd shares, purchased at Rs55.90?

Rajasekhar .G

Pochiraju Industries Ltd has been dormant for quite sometime but witnessed a spurt from 27 December and doubled in just four trading sessions, following which the stock witnessed some profit selling and has been falling.

Fundamentally, the stock is an average performer and may sustain the current levels. However, technically, there is a strong support at Rs48.20 a share for the stock and if the stock falls below this level, then it may attract more profit selling. As long as it stays above this level, the stock will be out of danger zone. On the upside, it seems the rally in the stock would terminate around Rs74. So you may consider the above mentioned levels as benchmark for investment decision related to this stock.

I have certain queries related to mutual funds. Should I invest money in an NFO or existing fund as the entry load will be reduced to zero (as per recent Sebi declaration) for online purchasing and, in case of an NFO, I will have to pay maintenance charges, which are quite high? I also want to invest in SIP for tax saving and other reasons. Which funds should I choose? My monthly investment in these SIP will be Rs2,000-3,000. Should I invest in Birla Sun Life Special Situations Fund?

Padam Singh Yadav

The decision related to investing in an NFO depends on the quality of issue primarily. If the objective of the issue meets your requirement of investment, then you should consider the NFOs. Investors, at times, prefer existing schemes as they get a track record to compare with. However, I think it is not a good policy always and you may prefer NFOs if you are a long-term investor, and the objective of the scheme suits your criteria of investment.

Regarding SIP, you may choose Reliance Tax Saver for tax-saving purposes. Otherwise, you may choose SBI Magnum Contra for SIP. About Birla Sun Life Special Situations Fund, I think it is a good offering and you may invest.

I have applied for IPO of SVPCL Ltd. But till date I have not been credited any shares in my account or refund for that. Kindly clarify what happened to my application allotment/refund.

Virender Kumar

Please refer to the website www.svpcl.com. It says: “Kind Attention Investors: We have finalized the basis of allotment and the approval for the same is awaited from authorities. The allotment/ refunds would be communicated to you at the earliest". Following is the address of the company if you wish to contact. SVPCL Ltd, 206A, 7-1-58 Concourse, Greenlands Road, Ameerpet, Hyderabad – 500 016 Phone: +40 66369058-59. E-mail: enquiry@svpcl.com

I have 500 shares of Sathavahana Ispat Ltd purchased at Rs62. Should I sell or hold them? Can you suggest me the near future target of the stock?

Pushparaj. B

Sathavahana Ispat Ltd is looking good fundamentally as the company as per estimates is likely to report EPS of Rs9.6 a share, compared with EPS of 5.23 last year, which translates into growth of around 83% in EPS. Technically, the stock is in bullish grip and has touched a new high recently (2 January). The stock has risen sharply since middle of November, which is the only weak point of this stock. However, the stock is still looking strong and thus it may gain further. The target for the stock in short term is Rs120 a share.

I am a new investor and last week, I bought 1,100 shares of Ispat Industries Ltd at Rs82. Tell me about its future. Until when should I hold this scrip? What is the return I may expect in January 2008?

Rajesh

This is a typical momentum stock, which caught the fancy of investors after lying dormant for number of years. Technically, the stock is showing signs of tiredness now. If the stock falls below Rs72, then you can expect further weakness in stock. However, a close above Rs81.50 a share with rising volumes could be considered as signs of more gains. As of now, the stock is in consolidation phase and you should hold.

I had bought 5,000 shares of Kaashyap Technologies Ltd at Rs4.85. What is the right time to sell them? Or should I hold them?

Pratapa

Kaashyap Technologies Ltd (face value Re1) is currently quoting at Rs8.66 a share, which is also its 52-week high. The stock has gained sharply from the levels of Rs3.30and is poised for further growth in future. The company was in news recently for acquisition of US-based Logic Bytes Inc. The company had also recently set up a high-end SAP competency centre at Chennai, which was inaugurated in November.

So, apparently, the company seems to be on high growth trajectory. Technically also, the stock is showing a lot of strength on charts and is poised for further gains. Taking into account the current fundamentals and also the current situation of IT sector, I think levels of Rs14-16 can be considered as a good exit opportunity.

I am 29 years old and I have high risk appetite and like everyone I would like to beat the index in my portfolio. I would like to make regular investments in MFs for next 10-15 years. But, in the short term (one to 1.5 years), I have financial expenses of about Rs3- 5 lakh, which I would like to meet from my MF investments. I have one-time investments in the following: SBI Infrastructure: 12%

(Rs10,000 via NFO); Fidelity equity growth: 38% (Rs33,000 in 2006). I also have the following SIPs since June 2007: Prudential ICICI dynamic: 13% SIP (Rs1,500); HDFC Equity growth: 24% SIP (Rs3,000); Reliance Vision: 13% SIP (Rs1,500). I would like to invest Rs30,000 in January and another Rs20,000-30,000 in April. In addition, I can start another SIP of Rs2,000-3000. What are the new funds I should choose? I am considering DSP ML T.I.G.E.R., Magnum Contra, Reliance Growth, to invest Rs10,000 each in these funds. But, Prudential Dynamic has given poor results so far. Should I stop SIP and transfer my Prudential Dynamic funds to buy Prudential Infrastructure fund? How do you think my portfolio should look like?

Brijesh

Regarding your new investments in January, I think you can take some exposure in Birla Sun Life Special Situations Fund. You may also invest in Reliance Natural Resources fund. For April, consider the issues available then or pick some solid performers from existing schemes. For new SIP, SBI Magnum Contra or Reliance Growth, as mentioned by you, would be a good choice. If you wish to transfer your SIP in ICICI Prudential Dynamic, then I think you may consider ICICI Prudential Indo Asia Equity Fund IP—Growth.

I want to Invest Rs13,000 in IPOs. Can you suggest any good IPO? How do I evaluate the same before investing?

Shyam Saraf

Technically speaking, some of the good upcoming IPOs is Future Capital Holdings Ltd, which is set to open on 11 January and close on 16 January. The other good IPOs are Reliance Power Ltd, JSW Energy Ltd, Emaar MGF Ltd. You can take exposure in these IPOs when they open for subscription. The process of evaluation of IPOs is a subject matter of research and is a very detailed topic.

I have purchased 200 shares of GTL Infrastructure Ltd at Rs94. What is the future of this stock with a perspective of two to three years.

Sandeep Tyagi

The stock hit its 52-week high on 2 January and is currently in bullish phase. However, from two to three years of perspective, I think that the stock has still some steam left and can achieve significantly higher levels of Rs178-184 a share. However, you must apply stop loss of Rs72, if the stock heads southward due to any reason.

I have following shares: 50 shares of PVR Ltd purchased at Rs300 a share, 200 shares of Manglore Chemicals and Fertilizers Ltd purchased at Rs7 a share, and 200 shares of Tata Sponge Iron Ltd, purchased at Rs100 a share. What should I do? Buy more or sell or wait?

Mani

PVR Ltd still has good potential. In the short term, the stock may come down to Rs325- 330. But it will move up again later and touch new highs. So, this stock has a hold recommendation. Mangalore Chemicals and Fertilizers Ltd is likely to consolidate. You may exit the stock around Rs56. Tata Sponge Iron Ltd recently touched its all-time high level. The stock, after a small consolidation, will move up again. So, you should currently hold the stock.

I bought 500 shares of SB and T International Ltd at Rs48.50 each and 500 shares of Steel Tubes of India Ltd at Rs11.50, 500 shares of Mirc Electronics Ltd at Rs38.50 a share. What I should do in the short term?

S.P. Sharma

Technically SB and T International Ltd seems to be south-bound and could shed some value in coming days. You may consider Rs41 as the stop loss for this stock. Steel Tubes of India Ltd is constantly on the upper circuit breaker for nine days in a row. This clearly shows that the stock is likely to gain further. You can hold this stock in the short term.

Mirc Electronics Ltd is also headed down and may touch levels of Rs32 (current market price Rs35.75) a share. However, the stock is not likely to fall below level mentioned above. You may consider stop loss below this level.

Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here

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