Mahindra & Mahindra can move to Rs 960: Murlidharan

Mahindra & Mahindra (M&M) can move to Rs 960 and Bharti Airtel may fall to Rs 280, says Manoj Murlidharan Vayalar, IIFL.

Murlidharan told CNBC-TV18, “Auto is one sector where money has pumped in and if you see this month we had the expiry at 5705. More or less the Nifty is flat, it is almost 100 points and it is trading in the range. Autos was one where there was money coming in and capital goods, these are the two sectors where money has come in.”

He further added, “Mahindra & Mahindra (M&M) is one script, the delivery based buying is a cumulative one. We are not only seeing the distribution happening. So that is one script which you can still hold long. Now if I have to simply say we are expecting longs which might come into that and some into the capital goods. So M&M if you are holding it should be with a weighted average price or stop loss close to Rs 916 because below that you will see that derivative hedge which is the shorting in the stock which has to play and then we would see the stock tanking. So Rs 916 should be a good stop loss, we should hold it on. Possible an Rs 960 can come in.”

“Bharti Airtel would be a sell. I feel that is one script, Rs 267 was the average pricing almost I guess some 68-70 days before when the average pricing in delivery had come in. So that stock is a sell because I don’t feel, there is good resistance as per the weighted average price accumulation that has happened somewhere close to a Rs 314-316. It is almost at that level, we can short it rather, keep a stop loss at Rs 316, I am expecting close to Rs 280 on that.”