STOCK COMMENTS

Hold L&T

Investment Advisor SP Tulsian is of the view that one can hold Larsen and Toubro with a time horizon of six months. Tulsian told CNBC-TV18, “Larsen and Toubro is definitely a very good stock but recently if you see the behaviour or the pattern of the capital goods makers in which L&T is the leading player as well as the Satyam controversy, the share has taken a beating. But if the investor has a time horizon of about 5-6 months, definitely he can add some more at Rs 550 because if you see the FY09 performance, the company is expected to post an EPS of close to Rs 40.” He further added, “In this time when all the companies are degrowing, still the company maybe able to post a growth of about 10-15 per cent on topline and bottomline considering the order book they are sitting on have a topline of close to about 40,000 crore with a growth of 10-15 per cent which is not a small growth in this time of a slowdown. So overall one can add even more at Rs 550 level, which seems to be a very ideal level to make fresh addition or one can continue with the present stock which one is holding with a time horizon of six months.”

Do not buy Edserv Softsystems

Investment Advisor SP Tulsian feels that one should not buy Edserv Softsystems even at Rs 10-12. Tulsian told CNBC-TV18, “I do not see the value of Edserv Softsystems more than maybe Rs 10-12-15. In fact I sometimes wonder why these types of companies are allowed to tap the capital market. You have a marketcap of Rs 72 crore, even if you calculate at issue price on a topline of Rs 4 crore, this is not the way. In fact all these type of issues are coming into the market just to have the speculative activity. First they get their IPO managed and somehow they exit at much higher price leaving all the stocks with the retail investors. One should not even consider when the share price falls to maybe Rs 30-25. In fact the value is not more than Rs 10-12 and even at those levels, you should not contemplate buying in these types of stocks.”

Exit Tata Teleservices

Investment Advisor SP Tulsian is of the view that one can exit Tata Teleservices at this level. Tulsian told CNBC-TV18, “For all TTML holders it was advised that they should participate in the open offer, where the acceptance ratio is likely to be seen at two- third that means about 62-65 shares getting accepted. And post the open offer- the open offer was made at Rs 24.70 and post open offer it is likely that the share will settle at around Rs 16-17 and in fact even at those levels, there is no upside left.” He further added, “Since if one has not participated in the open offer, it is better that he/she exit even today. Because from hereon the downside is much more than what you can expect any upside from here on. All the telephone stocks are reeling under pressure and the same thing will happen with TTML also, which would finally come and settle at around Rs 16-17. So, it is better to exit now at this level.”

Satyam has resistance at Rs 54

Technical Analyst, E Mathew is of the view that Satyam has resistance at Rs 54. Mathew told CNBC-TV18, “Satyam is a news driven counter. One can keep a stoploss at around Rs 42 that is a very strong support zone. The first resistance is at Rs 54 and if it is able to move above Rs 54, we could see a move all the way up to Rs 61-63. Finally, if it is ultimately even to take out Rs 63 which looks quite difficult we could see the stock rally all the way to Rs 72. So, there are three levels essentially and one should not compare Satyam with any other software company because here it is a different ballgame altogether, it is totally a news driven counter right now.” He further added, “Watch these technical levels and accordingly adopt profit booking strategy. I think if the news is good in terms of an open offer at a higher level or a bidder with a very good pedigree, then possibly we could see the stock go to that resistance zone of Rs 61-63 and maybe even all the way to Rs 72.”

Bombay Rayon can test Rs 137

Technical Analyst, Mitesh Thakkar is of the view that Bombay Rayon Fashions can test Rs 137. Thakkar told CNBC-TV18, “Bombay Rayon moved on a bit and then made its supply area at around Rs 120 and that’s the technical key level. There is good supply at these levels at around Rs 119-120. If this stock manages to move and close above that then it can probably go up to as high as Rs 137 where long positions can be exited.” He further added, “Hindustan Unilever has witnessed good selling in the last few days along with other FMCG stocks and it’s very close to support levels of about Rs 210-212, so as long as we are above this level on a weekly closing basis the stock is still safe and it can bounce back to Rs 230-240. But if we get a weekly closing below that then looks for targets of around Rs 190 on the stock.”

Punj Lloyd has target of Rs 97

Technical Analyst, Mitesh Thakkar is of the view that Punj Lloyd has target of Rs 97. Thakkar told CNBC-TV18, “Punj Lloyd is extremely oversold in weekly as well as monthly charts because of the way its been falling for the last couple of months, a pullback to around Rs 88 is on cards and it should be a good trading upmove on this probably led by a lot of short covering. If the stock can get past around Rs 88 the Rs 97 is the next target.”

Stay away from Alok Industries

Technical Analyst, Sudarshan Sukhani is of the view that one can stay away from Alok Industries. Sukhani told CNBC-TV18, “One has to stay away from Alok. I don’t think the stock has anything to do, volumes have come down, spreads are very wide, futures are not being traded, so these are the stocks that we don’t touch at all.