Hold United Spirits, sell DB Realty: Rajat Bose

Rajat Bose of rajatkbose.com told CNBC-TV18, "I would like to disclose that I am an investor in United Spirits. My point is that in the short-term things look bleak not just for United Spirits but for other stocks in the sector as well but I was recently reading an interview of foreign fund manager who is managing fund worth more than USD 50 billion and when he was asked about his emerging exposure, he talked about Diageo and Mercedes Benz in particular and his view was that through Diageo he was seeking good emerging market exposure."

"So even if there were to be some hurdles at least in the forth coming future, I would say for the longer term a particular industry that has consolidated over the globe, this is the only industry that has gone through a severe consolidation over the last ten years around the globe be it beer or hard liquor and United Spirits being acquired by Diageo, I think the long-term prospects are good," he said.

"So I would suggest a hold, put a stop loss below Rs 1750, if at all you maintain to put a stop loss there. I personally, although I am a technical analyst, I would not put a stop loss of Rs 1750 that I just advocated because I believe United Spirits over the long-term would give a lot of money."

"DB Realty has formed a bearish flag formation. The short-term moving averages are piercing the long-term moving averages and all of these moving averages have their gradient or slope on the downside. So that suggests that DB Realty has more downside and this kind of a stock is vulnerable in case of any sustained correction that might happen in the market going forward."

"So my suggestion would be to seek an exit from this stock because technically from all possible pointers it suggests that there could be further downsides ahead."