These experts want you to hold Apollo Hospitals and avoid Vodafone Idea

In an interaction with CNBC-TV18, Ruchit Jain, lead research analyst of 5paisa.com, and Shahina Mukadam of Independent Market Expert share their views on stocks such as Apollo Hospitals, Vodafone Idea, Jubilant Foodworks, Indiamart Intermesh, and more.

Jain: In the past two or three months, we have seen a consolidation in Apollo Hospitals. But the good thing is that it just seems to be a timewise correction that has happened above its 200 DMA support. The downside seems to be very limited from here. Once the stock gives a breakout about Rs 4,900-4,950 resistance, I think we should see some good up move in the stock towards Rs 5,300. So, I would advise continuing to hold the stock.

Mukadam: Remain invested because it is one of the preferred stocks in the hospital segment, and the management has reduced debt substantially. I am giving a deep stop loss of Rs 4,150, but one can hold. I think near-term Rs 5,300 would be a good level to re-look at the stock and otherwise hold it up to long-term (Rs 6,000).

Jain: Vodafone Idea structure is not that positive. Even when you saw other stocks from the sector doing well, this stock was relatively underperforming. And the volatility that the stock generally shows is not good for holding it for the long term. So, better to exit from this and move on to Bharti Airtel.

Mukadam: Vodafone is the biggest, the riskiest of the lot, and I would suggest exiting Vodafone now. If one wants to get into a very safe stock in the segment, I think Reliance or Bharti would be better bets. Otherwise, segments like banking or metals can be considered.

Jain: Post stock split on April 19, strong support for the stock is coming in the Rs 540-520 range. The downside seems to be very limited from here on in case you get any dip around Rs 540-520 range. That would be a good range where the risk-reward ratio would become favourable, and one can look to buy the shares.

Mukadam: Post spilt, I think that will take some time for the stock to settle. I would prefer levels between Rs 500 and Rs 530. But it is at lower levels. I think the business is improving, and margins are improving. Business looks robust, especially with the opening up trade.

Jain: In the short term, we could expect some time-based correction and some consolidation would continue. But in case you have a view of about six to eight months or about a year, you can expect a pullback towards Rs 6,200 again in the stock. So, one can look to leverage out at current levels rather than getting panicked if buying price was much higher. Look for about six to eight months, and if the stock comes to Rs 6,000-6,200 range, just review the stock again.

 Mukadam: The stock has corrected substantially if you look at the chart from a medium-term to one year period and there was a lot of froth in valuations. Given the COVID-related issues, the company was not able to perform as one would have expected. However, as the business picks up, the EBITDA margins will improve. I think one should continue holding.