SP Tulsian of sptulsian.com holds a cautious view on Bharti Airtel until there is any outcome from the SC on Monday when 2G matter will come up for hearing. In the midcap space he holds a positive view on Tata Global, Century Textiles, Sintex Industries and Dish TV.
SP Tulsian of sptulsian.com holds a cautious view on Bharti Airtel until there is any outcome on the 2G matter which will come up for hearing on Monday. In the midcap space he holds a positive view on Tata Global, Century Textiles, Sintex Industries and Dish TV.
Below is the edited transcript of his interview to CNBC-TV18.
Q: What would you advocate in terms of further levels on the Nifty? Do you think that the strong run is going to possibly continue based on a lot of the macro data etc. that we got through the day?
A: One has to take a positive move on the Nifty in each trenches and Nifty at 5830 is the next level target. Traditionally, May series is always dull and weak. So probably the history establishes that May is likely to be little subdued because back-ended results are always dull and that may have its reflection.
Q: Bharti Airtel has gained 10 percent this week. What would the recommendation be on that stock now?
A: I have a cautious stance on this stock until there is any outcome on the 2G matter which will come up for hearing on Monday.
But apart from that I don't think that there was any kind of fear really looming large on the counter. The global investors have all been giving this kind of confidence. So maybe the short covering seems to have come in coupled with the fresh buying at the lower level. I don’t think that the level of Rs 300 can be taken for creating fresh long position.
Q: A lot of data points came out today, which possibly helped the markets rise to the levels, the Land Acquisition Bill where we do understand that there is more consensus, which has come through and it could possibly be tabled in the Budget session come April 22 and then we had data points with regards to the foreign trade policy along with the trade deficit data, which came in at a two-year low for March. What do you think has helped the markets the most this afternoon?
A: I don’t think that Land Acquisition Bill can be taken as positive. Yes, the hopes have all been building up, but I will be cautious from Monday onwards when the Budget session will resume. I am excited or happy more with the trade deficit data specifically for the month of March, which has given the trade deficit of sub-USD 10 billion.
The export policy has focused on promotion of the exports going forward, lot of relaxations has been given which is going to reap its fruit in the time to come. So, I am more excited on the lower trade deficit data and the export policy which has been presented by the commerce minister. Many bills are lined up and hopes are building up that things will start to happen from Monday onwards, so even that will be very positive.
Q: Would you ride this momentum in the midcap space as well, the kind of moves that we are seeing and if yes, are there any stocks that you would advice for a shorter term perspective perhaps for the next one week or the next couple of days in the midcap segment itself?
A: In the madcap space stocks like Tata Global, Century Textiles, Sintex Industries and Dish TV can be watched.
Q: How would you approach Indus Ind Bank because a lot of analysts are touting this to be the next HDFC Bank? In the last 3-4 months the stock has not given too much in terms of returns, it’s just been very range bound. So, perhaps the scope to give incremental gains is higher as well. Would you recommend it now or would you be cautious at these levels?
A: I won’t call it as a next HDFC Bank in the making but the performance of Indus Ind Bank can compared with Yes Bank. The bank has posted earnings per share (EPS) of Rs 6 plus for the quarter. So, for the whole FY14 the EPS can be extrapolated close to Rs 29-30.
In fact Yes Bank also came out with good numbers. So, may be if you compare Q4 numbers probably Indus Ind Bank has an edge over Yes Bank. So, may be in due course of time because the differential between both of them again has risen by about Rs 50, at one point of time both stocks used to rule closer to the same levels. The stock can move to about Rs 465-470 levels and that should be seen as a near term resistance for the stock.
Q: What is your view on Cairn?
A: Once the clearance from government is in the company can very well ramp up their production. Eventually, the company is looking for production of 5 lakh barrels in next 18-24 months. I have a positive view on the stock.
Q: What would you recommend in the next 30 minutes?
A: I have a sell call on Titan because when we saw the stock moving to about Rs 264 we have seen lot of long positions having got built up in the counter by the short term traders or by the near term traders and a long call on Financial Technology because the run up indicates that either the informed buying is happening or may be some short covering is also seen to have happened in the stock with a price target of about Rs 772 for the day.
Q: What is your view on Kalyani Steel that stock is up 16 percent. Do you think things have turned around operationally for them now?
A: Right now they are operating at a capacity utilisation of between 42-45 percent and after Karnataka mining judgment capacity will increase to 80-85 percent in next 3-6 months. This stock can rise by 50-70 percent from current levels in next 1 year.
Q: Next week, the coal price pooling issue will be taken up on Monday. How soon do you think this issue could be resolved and how would you approach these stocks now?
A: One has to be little cautious on Coal India because one has to understand the implications on this company because it will be standing as a guarantor or maybe the procurement agency.
Overall, this will be really very big positive because there are so many power generation stocks, so many power finance companies in the form of the public sector undertakings (PSU) banking as well as the dedicated finance. So, I am keeping an eye on this to get resolved quickly.