Buy M&M, Reliance Ind may test Rs 1080: Prakash Diwan

Prakash Diwan, Director of Altamount Capital Management told CNBC-TV18, "Yesterday when M&M tested Rs 1,200 it seemed that there was going to be a lot of more pressure and it could kind of capitulate a bit more but the slew of positive announcements that the company is trying to make and then compensate for this damage is encouraging enough and it does give you an impression that they probably have things under control. The huge inventory is the only concern lying with the dealerships in NCR but if they were to use SsangYong Motor stable to come up with a petrol engine the first petrol engine and especially in the sub 2,000 cc the TUV is already there. They could start pushing sales for that.""I won't be surprised next week you see a huge ad campaign for TUV 300 suddenly in the market. That is something that is still new, fresh as an idea and people haven't got tired of it. So, you could start seeing resumption of sales from a different side. The strategy could kind of lead to some tactical changes on the product mix. So, for me it seems like a buy at these levels. The bad news seems to be kind of getting factored. It could probably lose a bit more but that is not going to be something that is going to be worrisome. Essentially it will come out stronger after this whole debacle and that means you don't mind paying slightly more for a stock that has a slightly better, stronger future," he said."Reliance Industries is probably a good buy for the traders. To be very honest, today I was surprised the way it fell down from the momentum that we saw in the last one hour and there is a lot of activity in the calls at the 1,100 strike very clearly. So, there has been some writing there which means it does have the potential to move to Rs 1,070-1,080 in the short term as well.""One can see Kwality move to Rs 200 in next 6-12 months," he added.Disclosure: Reliance Industries has acquired management control of Network18, which owns TV18 Broadcast and moneycontrol.com.