Safe stocks and sectors for next week

New Delhi: On the back of a volatile market, experts give their tips on stocks and sectors that are a safer bet now.

They bet on sectors like sugar, real estate, non-ferrous metals, IT, automobile, pharma and the stocks they are positive on are like Balrampur Chini, Bajaj Hindustan, Sterlite, Hindalco, Hindustan Zinc, Wipro, Glenmark, Cipla, Tata Motors, Infosys, TCS, Hinduja TMT, IndusInd Bank, Prime Properties, Kernex Microsystems etc.

S P Tulsian, Investment advisor

Watch out for sectors like non-ferrous metals, sugar and real estate

One could watch out for sectors like non-ferrous metals, sugar and real estate next week.

Stocks to watch out for

In the sugar sector, one could watch out for front line stocks like Balrampur Chini, Bajaj Hindustan; in the non-ferrous space they would be Sterlite, Hindalco and Hindustan Zinc; and Reliance Industrial Infrastructure, Unitech and Morarjee Realties in the real estate space are likely to do well in the long term (6-12 months).

Disclosure: I hold positions in all the stocks discussed above

Deven Choksey, KR Choksey Sec

I prefer automobile, IT and in the defensive sector pharma. The stocks that I like are Maruti, Telco, Wipro, Glenmark, Cipla, Tata Motors, Infosys, and TCS. These stocks will give 25-30% in a year’s time.

Disclosure: I may be holding investments in these companies.

Rahul Mohindar, Viratechindia

In sectors, we like autos like Tata Motors and Maruti. Tata Motors has good support at Rs 914 and Maruti at Rs 900. We have medium term target (three months) for Maruti at Rs 990 and Tata Motors at Rs 1015. We like Gujarat Ambuja for medium term target of Rs 135 and we would recommend investments between Rs 105-110.

Traders should hold on to short positions but however investors may capitalize on the opportunities to get into long-term investments.

Sumeet Rohra, Antique Stock Broking

Software is one sector that will stand out going ahead

Having said that software is one sector that will stand out going ahead. The sector has got nothing to do with any of the uncertainties like interest rate hike, oil price hike that the markets are facing today. Government has also categorically said that there will be no fuel price hike. This bodes well for the auto stocks.

Auto stocks stood the carnage

In the carnage of the last two days, auto stocks like Tata Motors, Maruti, and M&M have held on very well apart from Hero Honda. Auto and software are the two sectors that will continue to do well.

I’d put 80% of my money in mid caps and 20% in large caps

However, I’d like to focus on mid caps as money lies in mid cap stocks now. I’d put 80% of my money in mid caps and 20% in large caps. The percentage out performance will be higher in mid caps than the large caps. The latter are now available at more than 27 times multiples and there are good stories still available in the mid cap space.

Contrarian call: MTNL

Being a contrarian I’d like to buy MTNL at this level. The stock has corrected substantially and is well poised for a move towards Rs 300 in the medium term.

5 Top picks for next week

My top picks for next week would be Hinduja TMT, IndusInd Bank, Prime Properties, Kernex Microsystems, GSK Pharma would give good returns.

Hinduja TMT will hit the four-figure mark in another two months

Hinduja TMT is one stock that we have been recommending from Rs 350 levels. The stock has almost reached our target of Rs 800; the stock itself was up a handsome 28% this week. It’s still a very strong hold and the stock will hit the four-figure mark in another two months.

GSK Pharma can reward its investors by quite a margin from this level

GSK can reward its investors by quite a margin from this level. The downside from the current levels is till Rs 1380 and I feel that the stock is headed for Rs 1650-1700 range. The company is likely to get some amount of money from the property sale.

Disclosure: I hold positions in all the stocks I talked about