Hold JP Associates, says Baliga

Ambareesh Baliga of Karvy Stock Broking is of the view that one can hold Jaiprakash Associates at this level.

Baliga told CNBC-TV18, "At these levels, I suppose one should hold on Jaiprakash Associates. But the immediate future is not too bright because if you look at the various divisions that they have whether it is cement, construction, hotels, realty, I suppose all these are going through a slowdown especially the realty space. I think we still have worse days ahead."

He further added, "One of the things that actually spooked this stock was their expectation of disinvestment in the power project post the Reliance Power IPO that was the time when we had seen the stock touching new highs and expecting that they will be making good profits out of the stake sale in the power project. So once that got spooked, I think that was the final nail as far as JP Associates was concerned. I really don’t expect the stock to really perform at least in the next couple of months. Any upside like if it goes to the Rs 170-180 levels, one can book his/her losses for the time being and possibly look at entering this stock again at lower levels.”

Disclosure: Analyst has interest in Ranbaxy, Tata Motors and TCS.