CA Rudramurthy BV, MD, Vachana Investments, says, “real estate or the realty index as such will be the top performer and that will be my top bet sector when it comes to this Diwali to next Diwali. In fact, three great stocks are available in F&O and a largecap, which I can pick from real estate, will be DLF. DLF for me at current levels of around Rs 600-605 is a great buy. The second great pick will be Godrej Properties. This again is a great chart pattern is what I see on Godrej Properties and at current market price of about Rs 1,800 offers a great buying opportunity. My third and last pick in the same order will be Oberoi Realty. Again, this stock is available in F&O. One can buy a position into it and keep rolling over your position in futures again.”
What is your view when it comes to PSU stocks? PSU banks and other PSU stocks have been buzzing in trade. How do you see the PSU stocks going forward?
For me, definitely PSU will continue doing good even for another year or so from now and I am still bullish. Now look at the PSU Banks. For me, SBI and Canara Bank are the two picks which can still do good from current level. Valuation comfort is also there in SBI and results which came out for the last two quarters are really good.
Stock prices are slaves of earnings and they have to catch up with good earnings. It is a matter of time. SBI and Canara Bank can further move ahead from here. In fact, Canara Bank, post results has already moved up. But SBI is yet to move at current levels of Rs 580 offers a great buy. If you see other public sector enterprises, I like stocks like for example BHEL, BEL and even look at stocks like PFCs, RECs and even more.
In metals and mining, I like NMDC, Coal India. These are all public enterprises which still have some steam left. Specifically on public sector banks, SBI offers a great buying opportunity. You cannot miss this in your portfolio at current levels. All the other stocks which I mentioned like BHEL, BEL, are stocks which can still do good from current levels.
When it comes to the Nifty Realty Index, we are seeing some kind of a down move in trade today. But on a year-to-date basis, this top sector will gain around 53%. Do you see more upside from here?
Definitely, yes. For me, real estate or the realty index as such will be the top performer and that will be my top bet sector when it comes to this Diwali to next Diwali. In fact, three great stocks are available in F&O and a largecap, which I can pick from real estate, will be DLF.
DLF for me at current levels of around Rs 600-605 is a great buy. Stock has given a clear breakout above those levels of Rs 575. So every dip from current market price to levels of 575 and at current market price, I will be a buyer in DLF. This stock is headed towards levels of Rs 750-800, a 30% upside from current market price and this has to come within a year’s time.
The second great pick will be Godrej Properties. This again is a great chart pattern is what I see on Godrej Properties and at current market price of about Rs 1,800 offers a great buying opportunity. It has just given a breakout already on chart in the 1750-1760 zone. So at current market price, I will be a buyer and on dips to Rs 1750, buy Godrej Properties. Look at targets of above Rs 2,000 to come very soon on Godrej Properties.
My third and last pick in the same order will be Oberoi Realty. Again, this stock is available in F&O. One can buy a position into it and keep rolling over your position in futures again. So for me, Oberoi Realty offers a great buy. This stock has given a clear breakout again above levels of around 1200. At current market price, I will be a buyer and on dips to 1200 buy this stock. Look at target of 1500 and for me, DLF, Godrej Properties, Oberoi Realty is a fabulous buy hold it for this Diwali to next Diwali. You will see a return of 30% plus to come on these stocks at absolute gains return and again available in futures. One can even buy it in futures and keep rolling it over and make good returns with leverage.
Nifty for the last seven trading sessions has been in consolidation around the 19450 levels. When do you see the Nifty to breakout from these levels?
Crude oil prices are now headed down and it has even broken all crucial supports which were there at around $88, $82. I would not be surprised to see another $10 move down in crude oil prices and now we are even seeing a flattening of the yield curve. We are also seeing interest rate topping. All this tells me that yes, there is still a long road ahead for index and largecaps will perform like mid and smallcap from this Diwali to next Diwali.
For me, Nifty has already made a strong bottom at around 18,840. So keeping 18,500 as a base, I will be a buyer at the current market price on every dip. FIIs are now still short in the market. They are yet to cover their short and they will start covering. DIIs will continue buying this market and if FIIs start buying this market and crude further comes down $10 from here, bond yield topping, interest rates topping, this market has a lot of legs to go on.
I would not be surprised to see all-time highs to come as soon as the end of this calendar year or end of this financial year and this market is a buy on every dip. Do not short at any cost and stock-specific, there are a lot of opportunities to buy in this market. Remain bullish on India and remain bullish on the Indian team.
Remain bullish on India and Indian team as well but then in this market which are the top picks that you are looking at? You said stock-specific, look at more stock-specific. So which are those top picks that you would give?
I have said that there are a lot of opportunities in real estate. So stocks like DLF, Godrej Properties, Oberoi Realty are my top picks. Private banks offer lot of opportunities stocks like ICICI Bank, Axis Bank, HDFC Bank looks good for me and stock specific if I have to see from PSU, just I mentioned SBI, Canara Bank and even some more names like BHEL, BEL.
Even stocks like REC, PFC have long way to go, Escorts can do good, ABB, Tata Communications, too. But let me give you two specific names. One is Tata Communications for me. The chart patterns are so strong. This stock can move towards levels of Rs 1,800 very soon and eventually this stock should go to Rs 2500 in a year’s time from now, available in future. Buy it at the current market price. Look at initial targets of Rs 1,800 and then 2,500. Have a stop-loss of Rs 1,650 for this.
For me. ABB came up with a fabulous result. Stock price is yet to move big and is headed towards Rs 4,550 initially and then yes, it can move towards the Rs 5.000 mark. Keep a stop-loss of Rs 4,200 and buy ABB. ABB and Tata Com at current market price, available in future offers a great, great buying opportunity and a great risk-reward trade at current market price.