Market expert Prakash Diwan believes it may be time to book profits for long-term investors in DMart operator Avenue Supermarts.

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“I would book profits if I were holding on for so long because it probably is too range bound to give you any kind of a delta from hereon,” he said.

Shares of Avenue Supermarts owned by billionaire investor Radhakishan Damani, registered their biggest single-day losses in nearly five months, as they fell 4% intraday on October 16.

DMart earnings have made several top brokerages remain mixed on the stock. While Kotak's 'Sell' rating stays due to punchy valuations, Nuvama has a 'Buy' rating with a target of Rs 4,021.

On October 14, the company reported a 9.1% year-on-year (YoY) decline in net profit at Rs 623.4 crore for the September quarter of fiscal FY24. The retailer reported a profit decline after 12 quarters.

Diwan is also cautious about HDFC Bank stock. He expects the second quarter of FY24 will be the bottoming out quarter for HDFC Bank. The bank is expected to report its earnings on October 16.

“The worst sentiment from the numbers would probably be in this quarter. Because the transition is going to take its toll,” he stated.

The bank's stock price has been impacted following its merger with HDFC's non-banking financial company division. In 2023, it stands out as one of the poorest-performing banking stocks, with a year-to-date decrease of 5%. Over the last three months, the bank's stock has fallen by 6%.

The stock was trading around half a percent lower at Rs 1,543.20 per share just before the release of its second-quarter financial results.

From the automotive space, Diwan recommends buy-on-dips on Tata Motors.

“We will probably see it consolidate a bit but then it will continue to move. Buy-on-dips is a much better way than jumping into it. If it corrects, it would probably need at least another 15-20% from here, which might be a bit debilitating, so I would recommend a buy on dips and hold on with the two-year horizon,” he explained.

According to Diwan, the impact of crude oil prices is usually temporary.

He believes, post December-January one will see a little bit of a softening because of the slowdown in demand.

“Crude is probably a temporary dampener. I would definitely buy on dips particularly some of the airline businesses which are doing so well, IndiGo is the one that I am talking about,” he said.

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(Edited by : Shweta Mungre)