Prefer Rel Infra over Tata Power, Reliance Power: Sharma

Salil Sharma, Technical Analyst at Kapur Sharma & Co is of the view that, Reliance Infrastructure is looking strong, so one can prefer the stock over Tata Power and Reliance Power. If Tata Power slips below Rs 91 then it would weaken further.

Sharma told CNBC-TV18, "Tata Power is the weakest of the lot besides Reliance Power. These two are looking quite weak on the charts and if they break the lows in case of Tata Power if it slips below Rs 91 then it would weaken further in case of Reliance Power, if it goes below Rs 86 then it could weaken further. The strongest of the lot would be Reliance Infrastructure." He further added, "After being bashed down badly Tata Motors is seeing a steady recovery happening. For the short-term it would be one of the strongest shares but a sustainable move upward would only come if it gives a breakout above Rs 252." Tata Motors's trailing 12-month (TTM) EPS was at Rs 3.94 per share. (Jun, 2012). The stock's price-to-earnings (P/E) ratio was 61.03. The latest book value of the company is Rs 60.66 per share. At current value, the price-to-book value of the company was 3.96. The dividend yield of the company was 1.66%. Disclosure: What we have discussed we could have recommended the same shares to our clients and in that sense I would have a vested interest.