Market analyst SP Tulsian of sptulsian.com, in his analysis of the day's stocks, explains to CNBC-TV18 that he is positive on Jaypee Infra on plans to monetise its large of tracts of land across Delhi. Tulsian is also positive on Karnataka Bank due to renewed buying and picks HDFCwhose warrants will lapse in August.
Below is an edited transcript of the analysis. Also watch the accompanying video.
A: I think this is the time for profit-booking because in the morning the estimate was about Rs 810 for Financial Technologies. MCX has already seen a huge run up last week while Financial Technologies did not participate in the same proportion. So maybe the time has come to exit.
I won't advise investors to create long positions in Financial Technology because that is available in the F&O space. Courageous traders can take a short position on Financial Technologies of about Rs 800.
Regarding MCX, the time is ripe for profit-booking by short-term investors. They can look to enter maybe on a likely correction of Rs 60-75 in MCX in the next one week or so.
Q: Paper stocks have been quite active. AP Paper is up around 11% and is to announce results next week. Any paper stocks that you would recommend? What's keeping them so active?
A: I have always distanced myself from paper stocks as an investor.
But if you take a call on AP Paper, I don't think that it has anything to do with the announcement of results next week. The results for the last two quarters, after a change of management, have been very horrible and pathetic.
The main reason for this surge is on the buzz of delisting by promoter International Paper who holds a 75% stake. A probable delisting of the stock could trigger the stock to move up. The surge in the stock was also due to accumulation for the last one week.
Regarding West Coast Paper , which was up 6%, there are continuous news reports of a possible sale of stake by the promoters. But I don't think that these news reports are of any relevance because the occurrence of the sale of stake has been denied by the management.
So it is risky to trade in AP Paper and West Coast Paper. It is better to avoid both at the current level.
Q: Jaypee Infra moved up quite well today on talks that the Yamuna Expressway will finally see the light of day by July 17 -18. How much of a run-up do you expect to see in the stock?
A: I am taking this as a very big positive for the stock. The focus should not be on the 165 KM expressway which might yield revenue of Rs 200-250 crore.
The big trigger will be monetisation or increase in the value of the land which the company holds in five tranches of 1,235 acres each with a tranche in Greater Noida, two tranches in Gautam Buddha Nagar, one at Aligargh and one in Agra.
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