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-#Crude prices hover at the lowest in nine months -#Nifty, #Sensex trade lower   Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew on Ask Profit. #ndtvprofitlive

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01:00This show is geared towards getting you answers to all of your stock related questions and

01:06to that end, if you have got questions for us, you can send them to us on that number

01:10that you see at the bottom of your screen.

01:13And in fact, markets as well, they are actually doing quite well in the context of things.

01:19You have cuts of about half a percent or thereabouts for the mid cap index and you are actually

01:23in the green for the small cap index to have the likes of TCS as well as ICICI bank.

01:28You have among the big losers on the benchmark Wipro as well as Coal India, ONGC, Hindalco,

01:34LTI, Minetree and it is quite a substantial fall.

01:38The latest trigger is the likelihood or the possibility of an increase in production on

01:44account of a resumption in production in Libya.

01:48Paint companies of course, because crude is a raw material for them, 30 to 35 percent

01:52of their raw material comprises of crude and paint companies use crude derivatives.

01:57So, cost of raw material.

01:59Next is tyre.

02:00Well, tyre industry uses crude derivative for raw materials like synthetic rubber, chemicals

02:04and carbon black and this roughly accounts for 30 to 35 percent again for their raw materials

02:09as well.

02:10All right.

02:11Thanks so much for rounding that up for us.

02:14Let us get our experts in for the day.

02:16We have got Saurabh Jain who is equity head research at SMC.

02:20Marketing companies are on the show.

02:22If you see the companies, all marketing companies have already gained more than 40, 50, 60 percent

02:27in some cases.

02:28See, crude oil has, prices have fallen from 90 odd dollar to now 74, 75.

02:32That is and just a quick reminder if you are tuning in just now and you missed my earlier

02:37statement, the number that you see on your screen, that is where you send your questions

02:40to us and we will take them over the course of the next 25 minutes or so.

02:44I think if it is holding on, continue holding but of course, trading has to be done with

02:49a stop loss.

02:50So, I would say 860 should be the level to watch for.

02:53If we break 860, then that negates the…

02:56The stock is currently trading below that buy price at 4916 despite the kind of run

03:01that it has had.

03:02What is the view on the long term though?

03:06Just going forward for the next two, three years are already built into the prices and

03:12the gentleman has brought the stock at a very higher prices.

03:16I think it makes sense for him not…

03:18We are seeing maybe a little wobbles, maybe around the corner.

03:22So, therefore, what level would you watch very closely on the downside?

03:26So, yes, I do agree 400.

03:29So, if 4400 levels break, then that could damage the trend and that would be the level

03:34to exit.

03:35All right.

03:36Lakhan Kumar Bazari is writing in from Port Blair in Andaman and Nicobar.

03:41I have been quite attractive at this price also if you have a long term horizon but at

03:46the same time, if he has bought for 200 rupees and the stock is putting four times, he has

03:50already made four times money.

03:51Then Kishore Sharma who has bought at levels of 2572 and he is looking at holding it for

03:59three years or thereabouts.

04:01He is in the green.

04:02The stock is coming.

04:03If you are here for short term, then surely it makes sense to make short term profit and

04:07get out of it.

04:08Okay.

04:09Fair point.

04:10We spoke about oil marketing companies at the start of the program and we got a fundamental

04:14view.

04:15Benefit them.

04:16So, BPCL, the trend is good.

04:18340 acts as a near term support and I think this can go towards 400, 420.

04:24The same is the…

04:25Troubles and the travails that the space has undergone, would you also believe in that?

04:32See, it is very difficult to make a comment on the…

04:35We have got a viewer, Sanchit, who has bought at levels of 75.69 and he has got 750 shares.

04:44What is the view on this one, Vaishali?

04:47Show some strength, but that was only above 180.

04:51You were also talking about IDFC first.

04:54Could you also give us a view on that?

04:55By the way, the first question on IDFC was from Sibi.

04:58He bought a very substantial amount, 1 lakh shares and he is making a profit of 1000,

05:05oh sorry, 1 lakh rupees.

05:07Apologies.

05:08The stock was bought at…

05:10They have lost not number of subscribers, they have leased harpoons in the industry

05:16and because of the price hike, the recent harpoons hike, surely they will be, maybe

05:21they will be…

05:22He is asking whether he should hold or sell at this juncture.

05:25He is in a loss.

05:26It is not a very substantial loss though.

05:29Vaishali, on the charts, how does it look?

05:32So…

05:33As well.

05:34All right.

05:35Let us talk about Indian Energy Exchange and the question is from Dhruvraj Patil.

05:40He is asking whether this is the right time to enter the counter for a period of three

05:46years.

05:47For now is a view on IEX.

05:48Morpen Laboratories is the next counter that we are talking about.

05:51We have got Ravi, who has bought 500 shares at 40 rupees per share and I am trying to

05:56find the current…

05:5755 to 150.

05:58All right.

05:59Nestle is the next counter that we are talking about and Ravindran from Bengaluru is asking,

06:04he has bought, now I am looking at it and he has bought, I think…

06:09Cocoa price have seen a steep run up impacting all the companies which are making chocolates

06:14also.

06:16On the valuation side, the company have already traded, August traded at a premium but right

06:20now, I think he can put his investment on hold and rest of the money where he wants

06:25to invest.

06:26Sure.

06:27That is it for that.

06:28Okay.

06:29Fair point.

06:30All right.

06:31Incremental investments in heritage foods instead.

06:32Janaki from…

06:33It should be the stop loss and look for a target of 580 to 590.

06:36That is the level that I think probably partial profit booking can be done.

06:41All right.

06:42Anvesh from Andhra Pradesh has bought but…

06:45I think in the last few years, the stock has clearly disappointed.

06:47There is a lot of competition in the market.

06:49First, they were dealing with great balance sheet.

06:51Now, when they have come with the growth, I think the numbers are not that interesting.

06:55Okay.

06:56I am going to try and get a view.

06:58RK Swamy is the name of the counter.

07:00It has currently got a market capitalization of 1200 crore rupees.

07:04We have got Anuj Dhameja who is writing in 15 rupees per share.

07:08He is in the green right now.

07:10He is wondering what the prospects are based on the fundamentals.

07:12What is your view?

07:15Well, the fundamentals are quite good and they come…

07:17…and crude oil prices which is seen as a benefit because it is a major input.

07:21Sort of on the fundamentals, there has been quite a bit spoken about Asian paints particularly because…

07:28…will make things worse for them.

07:30It is the cut in the crude oil prices which are making, you know, which are giving an opportunity for the investors to exit at a higher price.

07:37So, I take these gains…

07:40All the chats of all periodicities, there is a one-way move coming up.

07:44So, I would say better strategy would be to accumulate.

07:47We have seen that after making a high of 84, it comes…

07:50Indicators are very positive but do bear that in mind as well.

07:53The run-up has been very sharp.

07:55That brings us to the end of this particular edition of Ask Profit.

07:58Vaishali as well as Sourav, thank you so much for taking the time.

Ask Profit | Brent Crude Oil In Focus | NDTV Profit

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