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Aug 24, 2011, 06.31 PM IST
SP Tulsian, sptulsian.com evaluated stocks like Coal India, PFC, HDIL, Tata Power.
SP Tulsian, sptulsian.com evaluated stocks like Coal India , PFC , HDIL , Tata Power .
Amongst the metal stocks, he has cautious view on the ferrous metal stocks. "I wonít be taking positive call on stocks like JSW Steel , Tata Steel , Jindal Steel & Power , Bhushan Steel , Steel Authority of India ." However, from the nonferrous metal space he is positive on Hindalco , Hindustan Zinc and Sterlite Industries .
Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.
On Coal India
There is confusion because management said that the closure of those 22 mines in Jharkhand has not happened. They have eight subsidiaries in the each region. This subsidiary has slightly higher presence to the extent of 16-17%. If 22 mines out of some 80 odd mines are shut that will definitely have an impact.
On a technical basis also, I donít think the share has much strength to move past Rs 410. The moment it breaches close to about Rs 400 or Rs 395, we hear such news, which leads to profit booking. When the news subsides we see renewed buying coming in.
Technically, without factoring these news, the share has a range of Rs 370-375 to Rs 400-405. I donít think that it is likely to fall below Rs 370 where short covering or renewed buying interest is seen.
This stock has been ruling quite weakly. There was news that they are looking to sell their stake in the Deccan Chargers. But I donít think there is any respite to the stock price and no idea for the specific fall for the day.
Fundamentally, I don't have a positive view on the stock. There is news that their overseas subsidiary may look to come out with the IPO plans. But nothing has been said specifically news. I donít think that there is any fundamental improvements seen in the paperís sector as such, which can justify the upmove in the stock.
Both PFC and REC should settle. Today, REC is marginally up by about 1-1.5%. But I donít know the reason for fall in PFC. It may be due to concerns related to bad debts from the State Electricity Board. But, this has taken beating beyond itís fundamentals. I donít think, it justifies this kind of a downside. The share can move back to about Rs 150 if we see any short covering and it should settle at those levels.
I donít think that there is fundamental comfort on any realty stocks. In case of HDIL and DLF we sometimes get confused with the short covering as renewed buying interest at the lower level. This is because of their presence in Mumbai and NCR where the prices are still holding on or we still see their business model remaining. So, sometimes things are very deceptive. But, overall there is negative call on the realty sectors as a whole. It is difficult to take a call whether the fresh delivery based selling or short sells have started creating in HDIL at these levels.
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