Stock Market Strategy: The stock market is seen in a period of ups and downs due to its high valuation. After making a record high of 52500, the Sensex has now slipped below 50 thousand. Nifty is also below 14800. Increasing cases of coronavirus have also raised concerns. Expert says that at present, the high valuation of the market is a big concern. Investors have got good returns in many stocks, so they are selling to avoid any loss. Inflows have been reduced by foreign investors. Any negative trigger can cause a big drop in the market. In such a situation, investors are advised to adopt stock-specific strategy. Here, based on the report of the brokerage house, we have selected some such stocks, which are advised to sell or stay away from.
Brokerage house ICICI Direct has suggested selling in Vodafone Idea. The brokerage has reduced the target for the stock to Rs 6, while the current price is around Rs 12. Vodafone Idea’s revenue on QoQ basis increased by 1 percent to Rs 10,894 crore in the December quarter. ARPU has also increased by 1.7 per cent to Rs 121. But the subscriber base has come down by 20 lakhs and now it is about 27 crores. The loss to the company is 4532 crores. The brokerage believes that there may be pressure on profitability right now. There is debt pressure on the company. Further, triggers like fund raising planning, tariff hike will be monitored.
Brokerage house Dolat Capital has suggested reducing the shares of Berger Paints. The target for this has been given 773 rupees. The third quarter has been better for Berger Paints. Due to the recovery in the paint business, the results have been better. Volume growth has been in double digits. Decorative and industrial business is showing improvement. Revenue growth has been as expected. The margin is improved by the cast reduction strategy in procurement. Currently, the stock has gained a lot since March 389. In such a situation, it is advisable to reduce the shares from the portfolio. New investors wait now.
While giving a neutral rating in Ambuja Cement, brokerage house Motilal Oswal has advised to stay away from new Nivea in the stock. The target for this has been kept at Rs 275. The brokerage house has given a neutral rating to the stock due to weak growth visibility. There has been 8 per cent growth in volumes, but it is weaker than the industry average. However, it is expected to improve further. However, both the company’s profit and revenue improved in the December quarter. After the lockdown, the company’s business has improved. It is expected that there will be pressure on growth.
Jubilant Foodworks is a company operating a chain of Domino’s Pizza and Dunkin ‘Donuts restaurants in India. Brokerage house HDFC Securities has suggested reducing the shares of Jubilant Foodworks from the portfolio and has given a target of Rs 2500 for this. The current price of the stock is around 3200 rupees. According to the brokerage house, Jubilant Foodworks is a strong company in QSR Pierce, but there is some concern about the anchoring. The company has an aggressively planned store expansion. The company’s profit in the third quarter increased by 22 per cent to Rs 123.91 crore.
(Note: We have recommended to sell or reduce shares here based on the report of the brokerage house. There are risks in the market. So, please consult the experts before investing or selling.)