MUMBAI: Rajesh Tambe, head of research, Sunchan Securities, and Bharat Dalal, technical analyst, Dawnay Day, answered viewers queries.
 
I hold 200 Sesa Goa @ Rs 180. What should I do?

Dalal: Sesa Goa has been trading on lower tops and lower bottoms, and is trading at Rs 146, which, I think, is the stop loss. So, hold till it is above Rs 146. Once it is broken, exit the counter.

I hold 200 Petronet LNG @66. Should I hold or sell?

Tambe: LNG Petronet is the best company in the sector, and is promoted by three PSUs with ADB picking up 5%. There are many ifs and buts of a public sector company - marketing is not there, you don't see the chairman speaking... so, there is no momentum in the stock. Yes, the fundamentals of the company are very strong...  gas has future.. nothing is going to work without it. Continue to hold the stock. You will definitely make profits.

Dalal: In the short-term, it will be an exit if it touches Rs 57. In the long-term, the investor can hold on because the stock has momentum to move sideways...if it is a short-term investment, exit at Rs 57 because from there it can go down to Rs 45-47.

I hold 100 Ranbaxy @430. What should I do?

Tambe: The story on Ranbaxy is over because the company has been bought by Daiichi. If you are interested in the pharma space, buy Nicholas Piramal at the current level. Wait for the market to fall because I don't see any strength in the market. The pharma sector is all about molecules.. you invent a molecule, sell it and make billions of dollars.

Dalal: Ranbaxy is loooking weak on the charts. Its last support level is Rs 450.. if it is broken, just exit. Even now, the investor can exit the stock. If the investor is interested in pharma, technically, Cipla is favorable in this kind of turbulent markets.

I hold DLF @ Rs 525. what is the potential of the stock?

Tambe: The fundamentals of the company are very strong. DLF promoters have a very good track record, and the second buyback offer by the company shows the concern of the promoters for the shareholders.

Dalal: It has stiff resistance at Rs 540-550, and has support at Rs 480 . I would exit if that is breached...

I bought 100 shares of Unitech at Rs 340. Should I book losses?

Tambe: Unitech has a very good track record... their operating margins are 60-70%. It is just that the perception has gone down.... this is a recessionary cycle... we saw it in 2002, and we are seeing it again in 2008. I would not suggest you to buy more because I don’t believe in leveraging....

Dalal: Unitech is already facing resistance at Rs 173-174 and then at Rs 182... on the downside, it has the last support at Rs 151. I would exit if that support level is breached because then the stock will be in for long sideways move. He should exit if he has a time period of less than one year.

I hold SBI @ Rs 2,194. What should I do?

Tambe: I have been saying in the programme - don't look into the operating margins of the bank...look at the net profit, the total revenue of the bank... what is more important is the cost of acquisition of three accounts - savings, current and fixed deposits... any bank making profit of more than 14% is a good bank.. Ccontinue to hold the stock. I would also suggest that retail investors should buy Bank of Baroda, Canara Bank, and even Dena Bank at the current level.

Which are the best sectors to invest now?

Tambe: Banking, telecom, and steel...

Dalal: Infrastructure, banking and sugar. Within these sectors, I would go for large caps.  For example, SBI in the banking sector and one from the private sector. In infrastructure, I would go for Punj Lloyd and HCC. In the sugar sector, I would go for Renuka Sugar on declines spread over two lots...

Rajiv Goel, head (institutional sales), Bonanza Portfolio, answered queries on mutual funds...

I want to invest in mutual funds through SIP for five years and 10 years. Is Reliance Liquidity Fund – treasury fund a good idea?

Goel: Reliance Liquidity Fund is a good idea but if you are looking for 5-10 years, you should go for an equity diversified fund rather than a liquid fund. Liquid funds are for short-term investments - 10-20 days, one month or maximum of two months. The investor should opt for DSP 100 and HDFC Top 200, which are well diversified funds.

I own UTI Software Fund for the last one year but it has not being given good returns. Should I switch to some other fund?

Goel: It is because of the rupee appreciation that software stocks are not performing. There is no problem with the fund... there is no reason to exit if you are a long-term investor.

I hold Franklin India Opportunity Fund and UTI Infrastructure Fund. I would like to make new investments. Should I switch or stay with my old funds?

Goel: The investor should switch to UTI Infra and quit from Templeton. He can pick from DSP 200 and Kotak 30. These are all well performing funds.  He should be invested for at least two years to get good returns

I want to buy a diversified equity fund and a balanced fund. Which funds would you suggest?

Goel: Among balanced  funds, SBI Magnum is a good investment. Then there is Franklin India Balanced Fund, and among diversified investment funds DWS Investment Opportunity Fund is a good option.

What are FMPs? Sun Birla Life has an equity-linked FMP. Should I invest in the fund?

Goel: FMPs are actually debt products... these products are for investors looking for returns higher than debt and don't want to take the equity risk... most products give capital guarantee over a longer period. If you are looking for safer calls, these are very good products but the pay structure is a little stringent. As far as Birla Sun Life fund is concerned, it is an excellent product under the current circumstances.

You can send your queries to mam@utvnet.com