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Last Updated : Jul 05, 2012 07:11 PM IST | Source: CNBC-TV18

Stay away from Texmo Pipes, says SP Tulsian

SP Tulsian, sptulsian.com advice traders to remain away from Texmo Pipes.

SP Tulsian, sptulsian.com advice traders to remain away from Texmo Pipes.

Tulsian told CNBC-TV18, "Texmo Pipes- for last two-three days, we have been seeing this weakness happening and maybe there was news that some of the stake of the large investors are moving out. But whenever I see these kind of things, I see this more as a margin call or the warning bells making it quite risky because these kind of things happens only where the structured investments have been made by the financials or the margin calls starts getting triggering in and you cannot rely and you cannot have the comfort on these kind of stocks."

He further added, "I will be quite cautious, we have seen these kind of things happening in the stock like Varun Industries which has corrected by about 75% in couple of months. So this is an alarming situation and I will advise to stay away from the stock."

"ITC will not fall below Rs 240-242 where the renewed buying will come and we have seen that happening at about Rs 245. But because of the focus now having shifted from defensive to the other sectors where the traders and investors are getting good returns, I don’t think that much upside is seen from hereon because one can take a range of Rs 245-260 though one needs to closely watch the Q1 results also of all these FMCG companies including ITC but I will be keeping my target of Rs 260. So I see very low trading opportunity, infact in the options, there is no point in playing into the options one can look to write Rs 240 put in the ITC but there is no point in taking a positive call of a great extent from hereon."

First Published on Jul 5, 2012 07:07 pm