Ask Mint | On Investments

Ask Mint | On Investments
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First Published: Sun, Jan 20 2008. 11 48 PM IST
Updated: Sun, Jan 20 2008. 11 48 PM IST
Please advise me on the prospects of Moser Baer India Ltd, purchased at Rs323. I am a medium-term/long-term investor.
Suvendu Chakravarty
Moser Baer India Ltd has witnessed a sharp fall after 3 January and is currently well below your purchase price. However, I do not see any major problem if you are a long-term investor. Purely technically, I am seeing a big upmove in the stock in a time horizon of three-six months with a target of Rs430, which means a gain of roughly 71% from its current closing rate. You may take the recent fall as an opportunity to average out your investment.
I have 200 shares of GMR Infra , bought at Rs250, and 1,000 shares of Himalya International, purchased at Rs25. Please advise on the future of these stocks?
Yash Verma
GMR Infrastructure Ltd is undoubtedly a good stock with a long-term perspective and is likely to offer you decent returns. The stock has been under selling pressure for some time now. But it is likely to regain strength from levels like Rs190. So you must hold this stock. Regarding Himalaya International Ltd, the stock witnessed a sharp upward move on reports that the company has decided to issue upto 1 million shares to founders and strategic investors. Moreover, it announced a sharp jump in net profit for its second quarter, raising hopes that the company may do well for the rest of the year. In view of these facts, I think you may remain invested for six more months and then take a call after checking the fundamentals at that point of time. In a nutshell, you may hold both your stocks.
I am holding 5,200 shares of GV Films Ltd, purchased at Rs13.70. Should I sell the stock at the current level of Rs10.96 or hold?
Vikas Pareek
GV Films Ltd is a typical momentum stock and normally witnesses high volume play. The stock witnessed a rally in December, but has been coming down this month. Though fundamentally I do not see anything exciting about this company, given its very nature of a momentum stock, you may hold it for some time now. The stock has a resistance at Rs16.50 and support at Rs9.50.
I purchased 100 shares of Guj NRE Coke at Rs 118 a share, 100 Shares of Lloyd Electric at Rs177 and 100 shares of Pricol at Rs35. Advise me about their prospects.
Gopal Singh
Gujarat NRE Coke Ltd is currently in a consolidation phase, which suggests a likely break out on upward side in time to come. So you may hold this stock with a time frame of six months to a year.
The stock is likely to offer decent returns. Moreover, the Reserve Bank of India’s notification that foreign institutional investors can purchase equity shares of upto 74% of the paid up capital could also boost the stock. The company is India’s largest independent producer of metallurgical coke. Lloyd Electric and Engineering Ltd is also in a consolidation phase and can witness good upward move only when it crosses the level of Rs220 with good volumes. As far as Pricol Ltd is concerned, the stock is now showing signs of upward movement and once the market stablizes, it may move up from current levels. The target for this stock in long term would be Rs58 and stop loss Rs22.
I have bought 200 shares of International Combusion at Rs.550 a share one month back. Should I hold the scrip of exit? I can wait for one-three years.
M. Shahroz
International Combustion India Ltd is currently in a consolidation phase. However, it has the potential to repeat its October performance. The stock has a strong resistance at Rs649. If it closes above this level with good volumes, then it may hit levels like Rs800 or so. In my opinion you should hold this stock as I am reasonably hopeful that you may get decent returns.
What are the prospects of Morepen Labs and Himachal Futuristic Communications Ltd.
Niraj Patel
Morepen Laboratories Ltd has seen sharp gains in Decemebr and since then it has retraced sharply. The stock is currently showing some signs of weakness in short term. However, in the long term, the stock may bounce back to its high levels. The stock has strong support at Rs20.75, and if it goes below this level, then there could be further fall. Recently the company reported a third quarter net loss of Rs211.79 million, which has only widened over the quarters. I think you may plan to exit at around Rs30. Regarding Himachal Futuristic Communications Ltd, it is a typical momentum stock and is currently headed south and is locked at the lower circuit. However, you can hold this stock with a long-term perspective.
My father retired recently. He wants to invest Rs1,000,000 in mutual funds. Which should he opt for? Please advice.
Sachin
The decision regarding the investment is dependent on many criteria like expectation and nature of returns and time horizon of investments. For example it should be known very clearly that what kind of returns you want, whether you want regular returns, periodic returns, capital appreciation, etc. Also the time horizon is equally important. In the absence of such critical information, which are very vital in picking the right investment option for you, the advice would be largely generalized. Therefore, generally speaking, you can invest in SBI MultiCap fund, SBI Magnum Contra fund, UTI Banking Sector fund, Birla Top 100 Growth Option, Reliance Vision Fund , etc.
I am interested to invest in mutual fund. I would like to invest upto Rs15,000 at a time for a period of 1 -1.5 year this month. Could you suggest me a fund.
Anubrotho Poddar
You may invest in SBI MultiCap fund as it is likely to offer you decent returns in the time horizon mentioned by you.
I am not a regular investor in shares. I hold just a few shares (50 shares of IFCI and 30 shares of Power Grid). Please tell me the prospect of such shares. Also, tell me some good shares I should invest in and how much should I invest for long-term/short-term gains. I have also invested a large amount of money in mutual funds like Fidelity Tax Advantage Fund, SBI Magnum Tax Gain, Birla Sun Life International Equity Fund-Plan B (Growth), Sundaram BNP Paribas Tax Saver - OE GROWTH$$, Sundaram BNP Paribas Capex Opportunities Fund - Growth, and ICICI Prudential INDO ASIA Equity Fund- Retail Growth.
Anuj Kapoor
IFCI Ltd is a fundamentally good stock, which has a lot of interest of both retail and strategic investors. The company recently reported a 147% rise in December quarter net profit to Rs3.19 billion. The stock, which regularly figures among the top traded stock, has witnessed a lot of activity on bourses. However, in line with general market trend, it has fallen sharply in the last few days and it is currently in oversold zone. The stock has a strong support at Rs74, and if it falls below this level, then there could be some trouble for investors as it may then come down to Rs65 in short term. However, if it bounces back from current levels, then you may find it back in a comfortable zone of Rs85-95 shortly. I would suggest that you should hold this stock. Regarding Power Grid Corp. of India Ltd, it is also a very good stock, fundamentally as well as technically. Though the stock is down in sync with the general market trend, it has a key resistance level at Rs155, if this level is crossed with good volumes, then you may witness sharp gains in the stock. Going by fundamentals and technicals, the stock is a good buy.
Regarding other good stocks, I think you can invest in public sector banks such as Allahabad Bank, Andhra Bank, Union Bank, Syndicate Bank, Punjab National Bank, Canara Bank, etc. with a time frame of one-two years.
I am having 800 shares of Madras Fertilizers bought at an average price of Rs21.40. They were bought around eight months back. The price had crossed Rs23 fifteen days back and it is currently trading at around Rs18. What are the chances of it bouncing back? Kindly advice for how long to hold the same so as to book any profit.
Uday Khanna
Madras Fertilizers Ltd is currently showing signs of weakness in the short term and is indicating some consolidation in coming weeks, before any further move. Since the volumes have fallen significantly in this stock in the last few days and there is little buying interest in it despite low prices, you may have to wait for three-six months for the stock to show any significant movement. However , following this time period, you may review the financials and technicals and then take a fresh call. At current prices, you should hold the stock for the next six months.
I am holding 1,100 shares of Aarti Industries at Rs32, 150 shares of Alok Industries at Rs61, 406 shares of Rana Sugars at Rs25, 500 shares of Tele Data Info at Rs68 and 300 shares of BSEL Infra at Rs94. I am a long-term invester. Suggest their prospects.
Anita Tarun Biswas
Aarti Industries Ltd is showing signs of bottoming out at around current levels. The stock, after hitting its 52-week high on 4 January, has fallen to the current level of Rs39. The stock , after consolidating around these levels for some time, may resume its upward trend. Since you are a long-term investor, so you may remain invested in this stock. Alok Industries Ltd came off its all-time high levels in line with the general market trend. However, the stock is looking very strong on technical charts and suggests new highs in due course of time. If fact, if the stock falls further, then you may buy more of it with a long-term perspective. Watch out for the company’s third quarter results on 31 January. Regarding Rana Sugars Ltd, the stock has a strong resistance at around Rs25. If the stock crosses this level and moves up with good volumes, then it may gain further. You can hold this stock with a target of Rs38 and a stop loss of Rs19 irrespective of time period. Teledata Informatics India Ltd recently listed after its book closure for scheme of arrangement. I think you may book profit in this stock and invest in other good investment options. You may also convert this stock into Alok Industries. BSEL Infrastructure Realty Ltd has fallen sharply from its highs touched on 3 January. The stock is showing signs of weakness in short term, though in long term, it has good scope for appreciation. Considering a stop loss of Rs68, you may remain invested in this stock with a long-term perspective with a target of Rs132.
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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First Published: Sun, Jan 20 2008. 11 48 PM IST