Which Is The Best IT Stock For Long-Term Investment? #AskBQ
#AskBQ is BloombergQuint’s daily offering where market experts help investors make the right investment choice in the equity market.
In today’s episode, Sandeep Jain of Tradeswift Broking and Sameet Chavan of Angel Broking, share their views on Dabur India, Firstsource Solutions, Federal Bank and BF Utilities, among others.
Watch the full conversation here:
Edited excerpts from the conversation:
Youtube User: What is the view on Dabur India?
Sandeep Jain: FMCG stocks look quite expensive. I think ITC is a better bet and their valuations are attractive. But one can hold on the stock, fresh buying is not recommended.
Ram Hedge: Is it a good time to be bullish on Yes Bank with a time target for October?
Sameet Chavan: Yes if the time horizon is one to two months. Price-wise, it’s at the right point. Rs 330-335 is a strong support but I expect Rs 375-385 to be re-tested very soon.
Gaurav Jaggi: I need a view on BF Utilities.
Sandeep Jain: One can certainly hold on to the stock as it’s an under-performer.
Jithendra: I hold 75 shares of Quess Corp bought at Rs 750 with three to four years as time horizon. What should I do?
Sandeep Jain: Fundamentally, the stock is growing and there are few companies in this space. So, you can hold on and accumulate if it corrects Rs 50-100 more.
Nikhil: Do MCX and Voltas make for good opportunity at current levels?
Sameet Chavan: We are a little upbeat on MCX despite consolidation. Rs 800-805 seems to be a very strong support. Keep a stop-loss at Rs 785 and a positional target of Rs 855-875.
Consolidation is clearly on the cards for Voltas. Soon it can reach its recent highs of Rs 640. At Rs 590-595 will have a conviction to go long.
Abhishek Gupta: Which is the best IT stock to look at with a long-term view?
Sandeep Jain: Tech Mahindra in the larger cap has some steam left. I like Firstsource in the mid-cap space. The growth numbers and valuations are attractive and the rupee depreciation is a big benefit. One can also enter Hinduja Global once it comes down.
Puneet Nanda: Should I enter Persistent Systems at current levels with a one-year perspective?
Sameet Chavan: One should wait for a breakout to happen. Beyond Rs 880, the stock can give a strong momentum towards Rs 950-955 levels.
Anand Mishra: I entered Asian Paints at Rs 1,823. My view is for two years. What is your advice?
Sandeep Jain: The corrections are good time to enter. Asian Paints its not cheap, so wait to make a fresh entry. Those who already possess the shares should hold on.
Rajul Ghalla: I have bought Bharat Electronics at Rs 121. What should be my strategy?
Sameet Chavan: It’s reaching an important support zone of Rs 107-110. It has the potential to move immediately towards at least Rs 120-135 thereafter. Keep a stop-loss of Rs 106.
Jatin: I hold 108 shares of Glenmark Pharma purchased at Rs 608. Should I book profits? And what are your views on Godrej Agrovet?
Sameet Chavan: We are quite upbeat on the entire pharma space. Glenmark looks really good. Keep a stop-loss at Rs 640 and it can head towards Rs 700-720. I would avoid Godrej Agrovet at current levels due to declines.
Viewer: What are the views on Motherson Sumi and Federal Bank?
Sameet Chavan: Motherson Sumi is on the consolidation mode. Rs 310-312 are the trigger points to watch out for. Federal Bank has been under-performing. I would go for RBL Bank instead in the mid-cap banking space. Rs 590 is a very good buying opportunity.
Arif Patel: I’m holding 500 shares of Finolex Cables for the last two years with a long-term view. What should I do?
Sandeep Jain: It has great numbers and brand equity. If it corrects 5-7 percent further, one could go averaging. One can hold on at current levels without any worry.
Analyst disclosures: Both analysts don’t hold any stock that were discussed today.
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