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Market Guru in talk with RJ Salil Acharya of Radio City: People can invest in Canara Bank & PNB
Anil Singhvi, Managing Editor, Zee Business, says, strategy to invest in stocks with dividend is good for a bad market where you are not sure whether the market will go down from here and should you invest or not but this is not a right time to do so and it is a time when one can invest in stocks which are ready to run
Anil Singhvi, Managing Editor, Zee Business, says, strategy to invest in stocks with dividend is good for a bad market where you are not sure whether the market will go down from here and should you invest or not but this is not a right time to do so and it is a time when one can invest in stocks which are ready to run. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said, people, can invest in Canara Bank and PNB for return of around 10-15% in short term and 25-20% in long term.
Starting the radio chat, RJ Salil said, bazooka of Nifty and Sensex has started. People were expecting when Nifty will touch the 15,000 level but now it is at a touching distance and would reach there in the next few sessions. People were waiting for a correction to enter into the market as they were considering it as overvalued since November but it is not stopping.
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So, do you think that a new high base has been created and now, it will continue to grow from this level across the year? Mr Singhvi replied to it by saying, if it doesn't happen then, then people will stop believing in God as well as money. A lot of money in form of dollars are coming to India and strong purchase by the FIIs., not only in India but across the world - as we are not the only, who are at lifetime highs but the markets across the world are constantly looking strong - so it is the power of money. So, everything goes on the backseat when you have money in your hand.
He added, a correction will come but I don't know the level at which it will happen. So, there is a simple formula in which you should know the level and stop loss below which you should turn careful a bit and that level on Nifty is 13,800-13,850. So, you must not panic as long as the Nifty is above this level and continue to hold your position. Thus, basically, there is a maximum risk of 3-4% and you should keep it in mind and the rest of the things are good.
Continuing the chat further, RJ Salil said, in order to negate the risk, some people believe in dividend stocks, like ITC, Cochin Shipyard that has provided a dividend of Rs 24 for the year and lot of other stocks, recently. So, one can have this strategy, if you feel like saying there is a safety may it grow at a slow pace but provide a good dividend for the year? Mr Singhvi said, of course, it should be there but not at this moment. This strategy is very useful in a bad market when you are not sure whether the market will go down from here and should you invest or not. Right now, when the confidence level is very high then you should buy the stocks which are ready to run. Safe strategy with dividend is good for a weak market. So, at the moment I am looking at the stocks where momentum is there and action can be fast and quick money can be made.
Then RJ Salil asked about the stocks where momentum is visible and Mr Singhvi replied by saying that today, I will tell you the stocks that were never mentioned and they are government banks because when we are at 14,200 Nifty, we want stocks that have value and less risk of depreciation, risk has not ended but it is les, and there can be a upside. I would like to name two government banks today and they are Canara Bank and Punjab National Bank. Canara Bank can be brought around Rs 132-133, valuations are attractive and there is a possibility of NPA recovery and in that sense, you can expect the results to be better. Similarly, you can see opportunity in Punjab National Bank (PNB) around Rs 35. If you are trading for short term then you can think about 10-15% returns here and if you have a long-term view then you can get a return of around 25-30%. These are the two government banks where action can be seen.
Market Guru in talks with RJ Salil Acharya of Radio City is a series of interviews on stocks market.
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