Tulsian evaluates KS Oil, Cairn, ARSS Infra, NTPC

SP Tulsian, sptulsian.com in an interview to CNBC-TV18 analysed stocks across various sectors. He gave views on KS Oil, Cairn, ARSS Infra and NTPC.

Below is the verbatim transcript of his interview. Also watch the accompanying video. On KS Oil There are talks about the company is selling their wind projects or windmills to tide over the liquidity crunch. Also, there are rumours about promoters looking to exit completely from the company because they are broke and majority of their shares got sold. Majority of their stake or virtually the entire stake was pledged. So, if the company is getting sold these kinds of bumps come in. Couple of days back we saw that happening in case of GTL. Whenever there is distress sale and deals have not happened in a transparent way, promoters will always try to salvage as much money as they can off record. I won't be taking a fundamental call and trading bump sale which will all keep coming in these kind of stocks. When a stock has corrected by more than 75-80% there is some room for technical bump from there on. I will be ruling out on a fundamental basis but even on a technical basis one can't take a call that rise will keep happening. We have seen this in case of stocks like IVRCL and GTL. Traders should remain away from playing on trading bump on a daily or frequent basis. On Cairn India The company is heading towards conclusion of the deal. We will be seeing change of promoter and end of litigations. This will result into increase in production. Oil producing companies are not having problem in terms of dip in price. The outlook on this stock remains quite good because the company has already initiated the process. The outcome of the postal ballot will be announced tomorrow which in my view is just a formality and is going to get through. ONGC will be issuing no objection certificate (NOC) by month end. Everything will fall in place in next ten days. This can take the share to move past Rs 300. On ARRS Infra For the last 10 days the stock has been in accumulation, indicating that it has been accumulated by informed circle or value investors. It has been tightly moving in a range of Rs 285 to Rs 295. Whenever we see this kind of trend at some point the stock gives a break-out. So that break-out has come today. That is why the stock has moved to as high as Rs 335. Having settled at Rs 329, positive trend is likely to continue. The stock can touch Rs 345 to 350 maybe in the next couple of days. On NTPC As far as NTPC bids lined up for tomorrow are concerned, I will be keeping an eye on L&T, ABB and BGR Energy. That should revive interest because of NTPC bids.