6 stocks to bet on from medium- to long-term perspective

My sense is 9,800 and 10,500 is the intermediate range where the market is going to be, says Vijay Chopra, MD & CEO, Enoch Ventures.

What is your current read on the market situation?
The kind of pain which we are seeing in the markets would be there for another six months. But yes, there would be green shoots of revival. There would be sectoral outperformance and that would lead the market rally. I think there are companies like Reliance which have completely outperformed the markets in the last three-four months. The other sector which I am fairly bullish on is cement. I think big companies like ACC, UltraTech, Grasim should do well. Cement is one sector where I am fairly bullish on because whenever we see such kind of downturns and pandemic and when the government does a lot of spending, it is primarily headed into the infra space. And whenever there is spending in infra, there is a direct correlation between infra spending and cement. So I think that cement should do well.

The other sector which I am fairly bullish on is the two-wheeler space. Personal mobility is going to take a major upside. We are going to see domestic sales as well as international sales growing for companies like Hero MotoCorp, TVS and Bajaj Auto. These three companies should do well in the coming time. The third sector which should do well is the consumption sector, which is primarily the FMCG space. Companies like Hindustan Lever, Marico, Dabur and ITC should do well. ITC has recently published its results and their FMCG has done fantastically well.

Finally, pharma is one sector which has started showing up and if people are getting into pharma stocks, they should have a perspective of two to three years. I think these stocks can double up from here. So there is a lot of action in all these sectors. So I do not think there is going to be a major crash from here.

Yes, corrections are going to happen. We might see markets correcting even below 10,000 but they could come back. There would be bouts of excellence and markets are going to be rangebound. My sense is 9,800 and 10,500 is the intermediate range where the market is going to be. It is better to be in safer sectors rather than be all over the place.

Finally, I would also like to mention something about IT. Stocks like TCS, Infosys, HCL, MindTree can do well because globally we are seeing the demand for technology products and innovations and technology are going to lead the way. So technology is also one sector I am focussing on. So be focussed and be limited to certain sectors. There is money to be made even from here. So overall, markets should start looking good in the next six months and even in these six months, one should focus on these few sectors that I have mentioned.

Could you give us your top stock ideas for the medium to long term?
I would recommend Bajaj Auto, which is trading at about Rs 2,800. If somebody nibbles into this stock at these levels, it can very well go up to Rs 3,500. Hero MotoCorp should do well, which is trading around Rs 2,450. It can be bought for a target of Rs 2,800-2,900. I like Cipla, which is trading at Rs 639. If somebody buys with a medium term perspective, it can cross Rs 700. Similarly, Glenmark is also one company which I like. It has seen a stupendous rise from the lows but I think it should consolidate around Rs 460-450 and it can be bought around Rs 440-450. Then you should wait for 600 to happen.

As I mentioned cement, I like ACC, which trades at about Rs 1,280. It could be bought for a target of about Rs 1,400 in the medium term. Finally, I would like to recommend ITC, which trades at Rs 197. It can go up to Rs 230-240. So these are some companies I am looking at and I think there is money to be made here.