ASK JATIN – 14/03/2008
,I am Bhavik shah from Mumbai.
I wanted to take advice from you about the following companies which I am presently holding
and I am incurring a loss in all the companies as compared to the current market prices.
1 Tata motors purchased at 715(50 shares)
2 Reliance communication purchased at 600 (50 shares)
3 Navneet purchased at 115(25 shares)
So please advice me should I sell or hold?
Please give me details of each company mentioned above.
Hello Bhavik,Right now your portfolio is suffering from huge losses because of the negative market trend and huge long term correction
.Tata motors: As on Thursday the closing is 621, it is currently moving towards a low of 530 which was registered during the Jan fall earlier this year. But the script is losing momentum and is falling down in a downward sloping channel. The close of 621 is the lowest close in a year. MACD on the daily as well as weekly charts has given a sell signal so this script is weak. Any rally towards 700 to 730 zone will be met with severe resistance and it will be an opportunity to sell or exit pending long position.
Reliance communication: This script has closed at 500 as on Thursday and is well below the 200 DMA at 620. Along with the market, this script is also finding resistance while moving up and is met with heavy selling pressure. As a result, script is now in a bear phase, but compared to other stocks this script may bottom out sooner than later. Also one thing that needs to be kept in mind, is about the robust growth in telecom sector and amazing prospects in this sector. This script being the leader in the sector will be a good buy around 10 to 15% less than CMP for one year horizon
.Navneet Publication: It has closed at 106 on Thursday. The script is showing good strength and is out-performing the market. The script technically has very strong support at 95 levels and 88 levels. For any up move to be meaningful it has to close above 121, only then will it regain strength and move towards target zone of 139-142. Resistance will in the zone of 112 to 121.
Dear Jatin Sir,
Please suggest me good scripts for Short term, Medium term and Long Term Investment.
Hello Raju,Investments are normally made for a period of one year and above, anything less than that may be termed as trading. Since the market is in a bear phase and as we have told before, we repeat once again, market is undergoing time wise correction. In a bear market, any stock you buy, will come down as a result of selling pressure. Even though you may find some scripts very attractively priced, but still it will be very difficult to make money in the short term. But if you insist from a short term angle, than you can definitely look for the stocks in the pharmaceutical and FMCG Sector. These sectors are negative beta, and both the sectors are showing amazing resilience in the wake of market melt down. Stocks like HLL and ITC are showing good strength in the FMCG pack, and so are Ranbaxy and Cipla in the pharmacy sector. As far as long term is concerned one can consider a stock like L&T which will be very good buy around 2200 to 2400 zone, also RIL will be good buy around 1800 to 2000. One can go long in sugar sector as well, as this sector is consistently out performing the market. Interestingly the crude price which is hitting alarming levels of $110 per barrel is acting as boon in disguise for the sugar sector. It may be sooner than latter that government will increase percentage of Ethanol in petrol and diesel from 5% to 10%