Tulsian on Aban Offshore and the mid cap space

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Tulsian on Aban Offshore and the mid cap space

SP Tulsian of SP Tulsian.com spoke to CNBC-TV18 about his expectations of the market.

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SP Tulsian of SP Tulsian.com spoke to CNBC-TV18 about his expectations of the market. 

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: The start of this week has been Aban Offshore with 25% upmove. What's happening there?

A: This has been because we know one FII has seen increase or has bought about 1% stake in the company. The counter was quite heavily oversold for the last three consecutive months because nobody had the confidence. The company had all the problems of deploying their rigs. In fact, the one rig which got damaged, they have problems in getting insurance claims also. So it's all negative news and if someone is buying 1% on the delivery base, obviously, we have been seeing huge short covering happening in that stock. In my view, that short covering should stop and may be at about Rs 560- Rs 575, we may see profit booking happening again in the stock. 

Q: Do you see value in any of the midcap names after the kind of run up that we have seen?

A: You can't take a general call, but I will be careful with Aban because the moment you see the delivery based buying coming to an end probably you will see the stoppage of runup also. Similar is the case with Hexaware . The stock used to rule in the level of Rs 80-82. It has moved closer to about Rs 100 now and even if you factor in the Q4 results and CY12 guidance, I don't think that you see much value beyond a point.

The strategy in this market should be to try to front run or identify the stocks which can really participate. May be expecting better results from those companies who have scheduled their board meetings in the next couple of days or so, instead of chasing these stocks because probably the profit booking which can see the stocks falling, they are not the flavor of the traders by and large. So I won't be writing on the moment on these stocks going from here on.