Exit Bharti Airtel: SMC Global

an Interview with Rajesh Jain

Excerpts from an Interview with Rajesh Jain, Research Head of SMC Global.

Rajesh Jain of SMC Global giving a technical perspective about the market moves, portfolio and related factors.


Q. I hold a few Bharti Airtel shares @ Rs 428. What should I do?

Jain: The stock is good. It had a fantastic run since 2004, but after the bull run, it underperformed. If you are a long-term investor, you should diversify and invest in infrastructure. 🙂

Q. I hold 100 Tata Motors shares @ Rs 305. Should I hold?

Jain: I think you should book profits, because it will take some time for the company to pick up volumes and come out of its interest burden.
For that, there should be a revival in the overall market.
Till that time, I don’t think the company will be able to compete with players like Maruti and Mahindra & Mahindra.


Q. I hold a few Adani Enterprises shares @ Rs 820. My investment horizon is 5 years. Should I hold?

Jain: You need to have a lot of patience. I would say keep some stop-losses and diversify your investment. 🙂

Q. I have 500 Indiabulls Real Estate shares @ Rs 245. What should I do?

Jain: For this stock, Rs 250-260 is a good resistance zone. On the lower side, Rs 220-230 is a good support zone.
It is consolidating between these levels.
The day it closes above Rs 260, you can set a target of Rs 290.
On the lower side, if it breaches Rs 220, it will be bad.
So, keep a stop-loss of Rs 220 and wait for a target of Rs 290.


Q. I hold 2000 Ispat shares. What should I do?

Jain: I am not so buoyant about Ispat. Though we have seen a bull cycle for four years and a correction for two years afterwards, this is one stock which has not moved up too much.
Big companies like SAIL have not shown too much of a strength either.
If the giants have not shown good performance, I don’t think companies like Ispat can show better results.
Performance-wise also, it has accumulated losses.
It needs a lot of time to come out of the accumulated losses.


Q. What should I prefer? RIL or Tata Steel?

Jain: I will go for Tata Steel, because the commodity bull cycle is going on, and, as commodity guru Jim Rogers says, the next cycle is commodities.
In the short term, RIL may be able to do well and Tata Steel may not do that well.
Overall, I am bullish on commodities. I think Tata Steel would be a better bet. 🙂

Q. I hold 500 Indian Hotels shares @ Rs 79. My investment horizon is 1-2 months. What should I do?

Jain: This stock is a defensive play.
When the market is in an aggressive mode, defensive stocks generally lag around.
I would say you will have to wait till the Rs 79 levels. It has a huge resistance at the Rs 80 levels. You need to have a lot of patience with this stock. 🙂

Q. I have short listed Nestle, Hero Honda, L&T. Where should I put my money?

Jain: These are excellent companies.
I would suggest you to go for all the three as they will beat inflation and you will get good returns in the long term. 🙂


Q. Can you guide me through some auto ancillary stocks?

Jain: The segment has started showing revival. I think one can go for Sona Koya.


Source : http://www.utvi.com/stock-market/stock-market-news/28377/exit-bharti-airtel–smc-global.html

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