Stay invested in NHPC: Tulsian

SP Tulsian, sptulsian.com is of the view that one can stay invested in NHPC for a target of Rs 23-24 with a six months time horizon.

Tulsian told CNBC-TV18, “For NHPC - Whatever news flows which we are getting that one person has really gone short and if you go by today’s volume 30 crore shares have traded today as of now on NSE and BSE put together. There is open interest of 21 crore shares in futures. Even in the options about 6-8 crore open interest positions are there. It is learnt that two, three big brokers mainly from Ahmedabad, they have created a long position by availing margin funding and knowing that one very active player from Mumbai has gone short in the stock. Generally this fight we see it happening. You cannot really compare this with other margin calls which have been seeing happening in other stocks where the promoter and operator nexus is there because this is a government company with stake of about 87 percent.”
He further added,  "Whenever we have this kind of damage happening or may be the fight happening between bulls and bears you see the stock going out of flavour and it is very difficult to take a call that who will surrender to this fight. If one is a long term investor, has a six months horizon, should look to keep a target of about Rs 23-24 where one should exit because the recent carnage can make the stock to move either way. It can fall to about Rs 18 and once the short covering starts happening it can see a price of Rs 21-22 also. So, let’s not look to the current volatility and keep a target of Rs 23-24 with a six months time horizon.”