Stocks you can look at next week

Mumbai: Markets are expected to be choppy next week. On the back of that experts give a list of stocks which look attractive.

Stocks which one can think of buying are Tata Steel, ONGC, Maruti, Tata Motors, IPCL, Grasim, Hinduja TMT and the sectors to watch out for would be steel, cement, and capital goods.

According to them, investors should stay invested in the markets with a stop loss of 3,500 on the Nifty.

Salil Sharma, Technical analyst: One can look at front line stocks

One could look at frontline stocks like Reliance; especially after the correction today and can make a move upward next week. Tata Steel, too, has given a good breakout and the stock can see some activity going ahead. One could look at ONGC if it closes firmly above 1350. Above that it could make another move up. The correction in cement stocks seems to be over and they could also move up next week.

Gaurang Shah, Geojit Financial: Sectors to watch out for would be steel, cement, and capital goods

Sectors to watch out for would be steel, cement, and capital goods. Tata steel today went down due to the broader market correction but spiked up sharply before the close. Auto stocks like Maruti and Tata Motors should also perform next week.

Banking stocks would continue to remain sideways

Banking stocks would continue to remain sideways. However, steel, auto, select IT counters and some pharma stocks should do better. Investors should focus on only frontline stocks in these sectors.

Investors should stay invested in the markets with a stop loss of 3500 on the Nifty

Investors should stay invested in the markets with a stop loss of 3500 on the Nifty. So long as that remains intact there is no cause for worry. Any upside target on the Nifty is very difficult to predict at such high levels.

Sumeet Rohra, Antique Stock Broking: The top pick next week will be IPCL

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Large cap stocks will continue to go up, more to do with short covering. The top pick next week will be IPCL. The stock has the potential to scale its Rs 300 mark next week. Reliance touched Rs 1000 today, HDFC looks good, Grasim could also do well.

Maruti can show some activity next week. Reliance Communications is looking good for next week as well along with Hinduja TMT, which has bottomed out and is poised for new leg of the rally towards Rs 750-800.

Prime Properties and Hotel Leela are also good mid cap ideas

Prime Properties and Hotel Leela are also good mid cap ideas with a short to medium term perspective. Prime Properties is doing very well in the construction space and should report handsome numbers going ahead. This stock offers good upside potential from current levels. The stock could move Rs 50 odd from current levels to around Rs 195-200.

Investment advisor PN Vijay: Three pharma majors taking over leadership position

Ranbaxy Laboratories is slowly coming back on track. It was one of the most ignored pivotal because of the slew of bad news and shrinking margins. But in the last three months, the number of good news is more than the bad news, and they are getting their act together.

So incrementally, Ranbaxy and to some extent Dr Reddy’s Laboratories and Cipla also; these three pharma majors are now starting to takeover the leadership position. I would say that I would continue to keep holding Ranbaxy and keep adding it to my long-term portfolio.

PN Vijay: Sugar best performing sector in the whole market

Sugar sector in my view is the best performing sector in this whole bull market, if one looked at stocks like Sakhti Sugars, Dhampur Sugar Mills, Balrampur Chini Mills or Bajaj Hindustan.

It is a great going for sugar but it is a very basic agricultural commodity. So I would advise that if one has lots of profit on the table, just pick it.

PN Vijay: Don't think Infy will take center stage as it did in 2000

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IT companies had a bit of catching-up to do. Infosys Technologies was Rs 3001 when Hindustan Lever was Rs 160. So there is a bit of catching up in TCS, Satyam Computer Services and Wipro. But going forward this bull market is actually about manufacturing, infrastructure, and capital goods. So I do not think Infosys will take center stage as it did in 2000.

PN Vijay: Would probably sell Reliance Petrochemicals on listing

I would probably sell it because we are not going to see profits down the road. With Reliance Industries name, I suppose it would open with a 30 - 40% premium on the issue price. Of course they have done it in a very clever way. They have taken less money on application, just 1/4th the money.

Andrew Holland of DSP Merrill Lynch: Had upgraded software sector to 'overweight' position prior to results

Prior to the results we had upgraded the software sector to 'overweight' position, with Infosys and Wipro being the main calls. If one looks at Satyam Computer Services it has always been at a discount to Infosys Technologies. We consistently said that as time goes on, the biggies would get larger and contract size will be large for them.

Going forward, Satyam would be in a position to win larger contracts, which they are doing anyway. There might be more consolidation below that as time goes on. Overall, I think results were encouraging.

Stocks like RPL to provide good short-term returns to retail investors

Like it has been with RPL, and any good quality company, one will always see funds being attracted to the issue and that is what had happened here. We continue to see that across IPOs. The average premium on the first day of trading is over 30-40 per cent. So from a retail investor viewpoint, it is a good way of getting short-term returns.

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For longer-term investors and FIIs it is always a good thing to see good quality companies coming into the Indian market. This will attract fund flows to those companies. Each issue will be different but obviously on bigger issues it is a good way of getting increased exposure to India and some of the growth areas of India’s economy. So I expect it to continue.

Have a mix of domestic and MNC pharma in your portfolio

I think, one has to have a mixture of domestic and MNC pharmaceuticals. Contract manufacturing in India is obviously very strong for most companies. There has been a long litigation on generic companies, which has been priced into them quite well over the past year.

Most pharmaceutical companies have underperformed and there is some catch up to do. What we are seeing right now is the re-organisation of these companies to come back with the litigations and moving into research away from manufacturing. That is starting to show in valuations and re-rating.

Oil will under perform till they don't get pricing power

We were all going to say that oil is back in favour. Sadly the oil marketing companies still don’t have pricing power. Until the government gives them pricing power, these stocks are always going to under perform because they are bleeding money at the moment. Until they have power of their own destiny, investors are going to shy away. There are better opportunities and companies than can have their own destiny and enhance the profitability.