Kulkarni advices to avoid SKS Microfinance, Wockhardt

Shardul Kulkarni of Angel Broking has adviced investors to stay away from SKS Microfinance and Wockhardt.

Kulkarni told CNBC-TV18, "Once SKS Microfinance moves to trade-to-trade category, the sentiment connected to that stock changes significantly although fundamentally there may not be any big change but atleast from a traders’ perspective, a change in sentiment is clearly seen on the screen. So I think that atleast in the near-term over the next three-four trading days, it would be better to avoid these stocks." He further added, "Let us see how the market reacts over the next three-four trading sessions and there one can take a call, because if one see stocks like SKS Microfinance, the stock has been moving in a very strong uptrend and the news that the stock is going to be shifted into the T2T category has clearly dented that particular move. So probably the stock may move towards Rs 100 in the near future." "One surprise was Wockhardt wherein we are seeing that the stock has given a very strong downmove. Over the last two days, Wockhardt is down 10% from its highs and 10% correction was not seen in the stock since last six months. So 10% correction in two days is the biggest correction that we have seen over the last six months. So I think it would be better to avoid these counters. One can take a call again after the next three-four trading sessions of how they have performed." Disclosures: It is possible that we have recommended positions in the stocks discussed and we have them in our portfolios.