Exit Tulip Telecom around Rs 50-52: SP Tulsian

SP Tulsian, sptulsian.com advice investors to exit from Tulip Telecom around Rs 50-52.

Tulsian told CNBC-TV18, “In my view Mahindra Satyam and Tech Mahindra, both these stocks have run up a lot but if you see the price on both the stocks, Tech Mahindra having crossed Rs 1,000 and Mahindra Satyam having crossed Rs 110-115, in fact that is showing a lot of value buying continuing on the stock. One has to wait once the exchange happens of Mahindra Satyam into Tech Mahindra, probably Mahindra Satyam can move to about Rs 125.”
He further added, “I will be keeping my cautious view because ahead of the IT results etc, I do not know whether these shares will be able to continue its momentum. We may see some profit booking coming in, which can make the stocks to correct by about 4-5%.”
“Tulip Telecom, fiscal prudence demands that they should all exit. It is we all know that it is very painful process. As you rightly said once they see the price falling by 60% some technical bounce will come back. In fact that is what we have seen in the stock. Last week once or twice or maybe for couple of days it had hit the upper circuit but the moment it crosses maybe Rs 50-52 which I expect that probably maybe one or two down circuit and then we will be seeing the stock again moving back or the upper circuit hitting again. Maybe one can look to exit at about Rs50-52 because lot of concerns continues to remain in the stock.”