Stay away from HDIL, says SP Tulsian

SP Tulsian, sptulsian.com advises traders to remain away from HDIL.

Tulsian told CNBC-TV18, “Post this carnage which we have seen in HDIL, the market has never got any kind of respect except for one day when share moved by about 10 percent for the first two-three days carnage where we have seen good delivery based selling having seen from the promoters as well as from the institutional investors. One day upmove of about 10 percent which made the stock to move to Rs 82-83 was largely seen because of the short covering because the counter was heavily short.”
 
He further added, “Whenever you see this kind of fall in any stock, you see the shorts also start because those who have been following the trend, they go aggressive and go short. So the short covering got over maybe in a day and now hereafter obviously because of the concerns remaining in respect to some listed real estate companies also that they have not been able to honour their debt obligations and all that. This concern continues to remain on HDIL because still the reasons are not known, what could really be the, how much problems still remain to be there with the company and that is the reason no renewed buying interest is coming back. Because of the higher institutional investors, more specially from the FIIs and all that in the stock and whenever they come for selling in the stock then there are no buyers to lend support to that kind of quantity which is getting sold. So still the share continues to remain weak. Probably if you take the technical call - Rs 70 looks to be the reasonable support where the fundamental value starts coming in or maybe starts getting reflected into the price where we may see some kind of renewed buying interest coming back at those levels. Till then I will keep my negative bias on the stock and will remain away.”