InvestorQ : Diksha, do you have any stock tips for 14 Jan? Also wanted to know what should I do with BHEL and HPCL that I am currently holding?
Rutuja Nigam made post

Diksha, do you have any stock tips for 14 Jan? Also wanted to know what should I do with BHEL and HPCL that I am currently holding?

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diksha shah answered.
7 months ago
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You would probably recollect that on Wednesday, I had suggested booking out of Infosys and FACT. You can still exit these counters even on Thursday if you missed it out. For Thursday there are no further selling ideas from previous suggestions. I would suggest you wait for confirmation of Sensex 50,000 levels for a final decision.

Both BHEL and HPCL are making small profits but I suggest you hold on for now because as the government gets strained for revenues, there is going to be a good amount of dividend payouts. Also, as HAL has just seen, BHEL can also expect big orders from the Indian government especially in the defence space. Here is what I suggest.

· BHEL at Rs.36 (CMP-41) – Suggest to hold

· HPCL at Rs.220 (CMP-227) – Hold at Averaged Price

Let me now turn to your question of what stocks to buy

The one sector that could drive the markets higher from here is Technology because that is where most of the lag effect benefits of COVID appear to be gravitating. Infosys and Wipro did much better than expected in terms of margins and guidance. TCS does not provide future guidance even in its case, the results were above par. I will keep you posted.

Finally, here is a word of caution. There are two things to focus on. Firstly, Nifty valuations are around 40X P/E and that is not cheap by any standards. It is the steepest valuation in history. A lot will entirely depend on how convincingly and effectively the level of 50,000 gets breached on the Sensex and how the Q3 results support these valuations.

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