MTNL, Idea Cellular look good in telecom space: Vayalar

Mahanagar Telephone Nigam (MTNL) and Idea Cellular are looking good in telecom space, says Manoj Murlidharan Vayalar, Associate Vice President-Derivatives, IIFL.

Vayalar told CNBC-TV18, "Telecom specifically if we remember even last month towards the expiry last 5 days, majorly the money which came was Bharti, MTNL and Idea. Specifically if one is looking in the cash market and the long positions with a positive cost of carry. Bharti Airtel I guess there is good distribution happening last 3-4 days." He further added, "The short positions are still intact and we are not really seeing the short covering which is coming in. So it is anyone’s guess. We should not really be entering Bharti at this point. We feel there might be some more pain. Though it cannot really say it might be a Rs 235-240 but if I have to pick a stock in this sector at least couple of them, I would still go with an MTNL and an Idea at this point of time." In case of Reliance Industries (RIL), the last two months the weighted average price when the Rs 694 was broken, on the cash market and we saw that delivery based buying and that is when RIL started moving up. Now Rs 742 becomes a weighted average price when there is huge move at come one day Reliance instead of 5%. So I feel Reliance has got still upside, Rs 806-810 is what we are seeing in. but again it is almost at Rs 780. Now we want to buy it somewhere close to a Rs 770-772, keep a stop loss at Rs 768 and expect Rs 800 on that."