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  • Devangshu Datta - Independent Technical Analyst and Market Expert

    Devangshu Datta

    Independent Technical Analyst and Market Expert

    DATE: February 17, 2016, 12:00 PM

    SUBJECT: Stocks to buy & sell ahead of the Budget




    Hello and welcome to the webchat with Devangshu Datta on on the stocks to buy & sell ahead of the Budget

  • J


    What is the prospect of MCX in the next two-three months? Is there any scope for appreciation?


    If you're buying now, maybe, since the stock has lost some ground. Still the market mood is not so good and a large proportion of MCX business comes from commodity futures where volumes / prices have declined. The news flow is also poor. In purely technical terms, it could be a reasonable buy for 3-4 months with say, a stop loss at 700

  • C


    We saw the the markets drop last year. Will they correct again post the Budget? If not, then which stocks should be bought post the event?


    The Budget might have specific provisions that help specific industries. Your guess is as good as mine as to what those could be. Hint: Check out those industries which contributed to the BJP's coffers - those are more likely to receive sops But no sector has done particularly well in the last year or 18 months. Maybe the best option is to buy an index fund and average down? If you're stock picking, I'd say avoid banks, especially public sector banks. Avoid construction, avoid metals.

  • Y


    I have been following you since a long time. Your predictions are great. What is the exact range for Sensex to take support? I am a small investor, investing market with my hard earning money.


    Thanks- there is a huge luck component I prefer to look at the Nifty -- As of now, the index has lost something like 22 per cent in the last 11 months, down from a peak of 9120. It could lose more ground. How much more, I don't know but Indian bear markets often see 50 % wiped off from the top. It was more than 50% in 2008. If you're an investor consider this a good opportunity since valuations are coming down. but only invest cash you can afford to forget about for 2-3 years. And be prepared to average down

  • Y


    Can you please suggest one stock for the long term (minimum 5 to 7 years period). Only two conditions: It should be Rs 10 paid up and should be trading below Rs 100.


    Difficult question - am ducking now. Will address in a column or if you write to me at devangshu.datta at gmail dot com ?

  • P


    What are your views on NCC, Srei Infrastructure and PTC India Financial Services?


    NCC- reasonable if you can live with the possibility of a dip till say 40 (-35%) , It could have 2x (+100%) returns in 2 years Srei Infra - not so good PTS- trend looks quite bearish

  • R


    Our markets have plunged into crisis amid crude oil volatility and global turmoil. How much more downside do you see for our markets? which sectors do you think one should invest in the current scenario?


    Downside depends on global factors - for comparison in 2008, the Indian markets lost 60% from peak values. So far in 2016, India indices have lost only 22-24% Sectors - more a question of avoiding There is no sector which is doing particularly well but several sectors (PSU banks, O&G producers, Construction, Metals, are doing quite badly) Maybe you can avoid those sectors

  • R


    Do you think the government will announce reforms for the power industry and announce its participation in large infrastructure projects in the Budget to make India economically viable for businesses to operate? What is your outlook for power and capital goods sectors?


    There have already been announcements of power reforms - maybe there will be further emphasis in Budget. About participation in infra -the GoI is doing EPC contracts and also offering models like hybrid annuity for road projects. So it's very much a player already. Again this is an ongoing "off-budget" process. Cap goods may get some protection from imports Maybe there will be some exemptions from Minimum Alt Tax Power should do ok in the medium term (long-term not so sure because the overhang of bad loans will remain) Cap goods has taken a hammering and could become a value buy

  • D


    The realty sector has been adversely affected in the wake of dwindling demand, slow sales by the debt-laden developers, high unsold inventory and prolonged construction and project approvals. Do you see any immediate relief for the realty space post budget? What are your top bets in this pack?


    No I don't see immediate relief even if the budget has sops. Realty has a host of problems at the moment. It's affected by local factors as well as national and global variables. pheonix and IBRE are relatively the best performers at the moment. Godrej has probably done better than the rest of the realty stocks over the space of the past year or so. But almost every realty stock has taken a beating

  • M


    Taking into account the current FII investment, government's thrust on the 'Make in India' project and its pharma-specific initiatives like Pharma Vision 2020 to provide a road-map to the Indian pharma industry, what is your take on the healthcare stocks?


    Good growth prospects but you may need to look carefully at valuations. Pharma valuations are quite high. Technically one of the best performers

  • A


    Bank of Baroda is in action over the past few sessions. Is the stock a value buy at current levels for a 3-year investment period?


    No - it may be a buy on the basis that it will be supported by the owner (Govt) But not a value buy I think.