Hot stocks for next week

New Delhi: Which stocks or sector look good for investors to get in? Experts give their call on stocks like Bajaj Hindustan, Dhampur Sugar, India Cement.

Which stocks or sectors look good for investors to get in? Experts give their call on stocks like Bajaj Hindustan, Dhampur Sugar, India Cement, Arvind Mills, Bharti Tele, Entertainment Network India Ltd., TV18, Deccan Chronicle, and even on Zee Telefilms, Balaji Telefilms, Sri Adhikari Brothers and Adlabs.

On sectors, they are positive on steel, banks, sugar, cement, midcap tech and media, auto and capital goods.

Suraj Saraogi, Keynote Capital Services

Steel, banking, sugar are looking good. One should keep a stoploss at 250 points downwards.

Rahul Mohindar, Technical Analyst

In terms of investment opportunity, for medium to long term, we like Arvind Mills and Bharti Tele at these levels. In cement, we like India Cement with a short term target of Rs 180, for 2-3 weeks. In sugar we like Bajaj Hindustan with a stoploss of Rs 410.

Dhampur Sugar has a strong support at Rs 215. The long term target for this stock is Rs 275. We are suggesting more trading than investment call at these levels.

Dipan Mehta, member BSE

Investors would do well to remain committed to sectors that they are already invested in rather than chase new themes. Periodically, different sectors are getting into the thick of action. The wind is blowing strong and at some point in time it will come to your garden also.

Don’t leverage even a single rupee in the market. They can play extreme havoc in such a market. Keep strict stop losses; shun intra-day trading altogether if you want to stay in the profits.

We are positive on mid cap technology, media sector with stocks across the print, television and radio. We are bullish on stocks like Entertainment Network India Ltd., TV18, Deccan Chronicle, and even on Zee Telefilms, Balaji Telefilms, Sri Adhikari Brothers and Adlabs.

Hitendra Vasudeo, Technical analyst

Investors should adopt the strategy of buying on corrective dips. Weekly support areas for buying next week would be 10,650, 10,375 if at all markets dip and come to these levels. The immediate target level would be 11,000.

Capital goods sector would be the first preference to buy even if they are at higher levels now. The markets have been moving up primarily because of the strength provided by this sector. Cement will continue to do well next week followed by the auto sector.

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Other sector, which has been a laggard and might come into action next week, is the IT sector. Because of the weakness in Infosys, the sector did not perform well last week despite Satyam and TCS giving good breakouts.

Investors could buy into TCS and Satyam Computers next week.

TCS has given a breakout at Rs 1750 levels and a one-month target for the stock could be Rs 1990 with some intermediated corrections along the way. Any corrective dips to Rs 1741 or even Rs 1690 should be used for buying with the objective to hold a bit with a short-term investment objective.

A major breakout had happened in Satyam at Rs 775 and a trading breakout happened this week. So, one can expect Satyam to touch Rs 865 in the immediate future. However, they will get an extra boost if Infosys starts moving up.

Few experts also suggest sectors that are looking positive at this point

CIO at HSBC Asset Management Pvt Ltd, Anup Maheshwari

Telecom

The telecom sector is doing extremely well and we are seeing that from the numbers. I think it has got a couple of decent years before a lot of this size catches up because they are very capital intensive businesses at the end of the day, so the return on capital employed at this point is clearly above trend. This may continue for a year or two and therefore keep the stock prices going well.

Some of these companies are also looking at the broadband space which offers a fair amount of potential. We have not seen that really being exploited into profits. So that is another area to look forward to.

Auto

I think certain segments of auto still look very interesting. What is most prominent perhaps is the commercial vehicle side, which will do, reasonably well from here as well. One has got to be company specific in two-wheelers. The two-wheeler sector will do reasonably well but I think one has to think which companies one is investing into. Commercial vehicles is a category clearly where I am fairly optimistic.

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Commodities

We are broadly bullish on commodities so this sort of volatility in the shorter term is part of the longer-term uptrend, so we are not worried on the commodity side. As far as steel is concerned it was driven by what the issues in the region particularly related to China are, but that seems to have sorted itself out in the short term.

We have got some positive bytes coming from there and the sense is that steel has bottomed out for the time being, in-terms of the phase that has it gone through in the last one-year. We have got better times to look forward in steel and as far as other commodities are concerned, the longer-term trend is still positive. This includes non-ferrous metals like aluminium, zinc and copper.

Cement

Cement is a localised business and there is a huge demand for cement but at the same time the supply side is constrained, so we are seeing some of the cement companies extracting some of that value in terms of pricing.

Freight increases have also pushed cement prices up but from discussions with cement companies it is evident that for the next few months things could remain fairly tight and one could have further upside in prices. So that is positive for cement stocks.

One has to view this in stages for instance in the monsoon season the cement prices will get soft as well as the fact that we have got elections coming up. But subsequent to that the supply will remain tight for prices to remain firm. Short capacities will come up but I think that is couple of years away.