SP Tulsian neutral on Mahindra Satyam

SP Tulsian, sptulsian.com has a neutral stance on Mahindra Satyam. He feels maybe Rs 105 looks to be the stiff resistance because of the swap ratio of 2 shares of Tech Mahindra for every 17 shares of Mahindra Satyam.

Tulsian told CNBC-TV18, “Mahindra Satyam merger having announced with Tech Mahindra the upside can only come if the Tech Mahindra starts moving up and I am not keeping any positive stance on Tech Mahindra from hereon. If you see the rise though all the tech stocks are up today, more specially the larger ones, but if you see the rise into the Tech Mahindra the stock I think has moved much earlier, maybe about 15 days or one month the stock has shown a good considerable rise in the share price.”
He further added, “Since I am not keeping a positive stance on the Tech Mahindra I don’t see it moving beyond Rs 900. So obviously the upside cannot really come into the Mahindra Satyam as well, so keeping a neutral stance from hereon that maybe Rs 105 looks to be the stiff resistance for Mahindra Satyam because of the swap ratio of 2 shares of Tech Mahindra for every 17 shares of Mahindra Satyam.”