Bhambwani told CNBC-TV18, "Mangalore Refinery and Petrochemicals is a market underperformer, if one compares the relative strength comparative of the stock with Nifty-Fifty, one will find that the Nifty would have given one far superior returns and taking a bouquet approach wherein one is reducing the risk and spreading them across fifty counters. It is certainly not the best investment option available in town at this point in time. I think the upmove that one has seen in the last two-three months would provide an opportunity to cash profits probably at a target of Rs 52-52.5, that is when one should start pulling the money out of this counter with a possible maximum stretched limit of Rs 55."
He further added, "The downside support is at Rs 40. Should it close below Rs 40 with heavier volume, then it is time to actually start seeing red on this counter because distribution and the heavier profit taking could be on the cards. So, I think that one should stay invested at this point in time, hold it with the stoploss at Rs 40, wait for a closing below Rs 40 before. If one do see Rs 52.5-55, then one should do cash out of this stock and deploy this money elsewhere for better returns."
"I think one has many other options like Reliance Petroleum , which is a far superior technical play at this point in time, Reliance Industries , itself is a good option, Gujarat Ambuja Cements or Infosys and TCS provided one is wilting to wait for six-twelve months time frame would give much better returns and also a lower risk quotient."
Disclosure: Analyst doesn' t hold the above stock.
