Friday, March 25, 2011 How Mehta Equities view Unitech, Tata Comm, ABB How Mehta Equities view Unitech, Tata Comm, ABB

In an interview with, Prashant Tapse, senior research analyst, Mehta Equities gave the technical outlook for three buzzing stocks. The same is as follows:

Unitech: Realty firm Unitech was in action mainly on the back of news reported saying that Unitech has sold over 300 units worth Rs 2 billion in its mid-income housing project at Gurgaon lunch. The country`s second-largest realty firm had announced in February that it plans to make available 10 million sq ft (msf) of area in the next few months. In February last week, Unitech had launched a township project in Rewati. It is seen that the demand and pricing environment of the residential product are stabilizing and there has also been a marked improvement in the demand for office spaces. Hence Unitech is focusing on wide array of projects to tap this growing demand. Technically, we advice traders to Buy / Hold on to the counter with a stoploss of Rs 36 for target Rs 44.

Tata Communication: Tata Comm was in action for last couple of days on the buzz that the controversial land issue may be resolved soon which is not yet clear in any terms. The buzz follows Kapil Sibal ordering a probe into the VSNL land divestment. The land parcels is around 770 acres, located in and around Delhi, Kolkata, Chennai and Pune and estimated market value is around Rs 60-80 billion. If one have a look at the weekly charts, stock is showing the positive signs that is probably bottoming out, hence considering optimistic outlook on long-pending issue of sale of surplus land which is near resolution, we advice traders to hold on the counter with a target of Rs 260 in the near term.

ABB: Swedish firm ABB along with State-owned Bharat Heavy Electricals (BHEL) reported that it has won a contract from PowerGrid Corporation along with for supplying equipment for the construction of a transmission link. The link comprises three converter terminals and a power transmission system with a built in capacity of up to 8,000 Mw. The use of Ultra High Voltage (+ 800 kilovolt) minimises transmission losses. BHEL together with its partner ABB, Sweden, will execute the project involving system engineering, design, supply and installation of three HVDC converter stations. The first stage of the system is scheduled to be operational in 2014 and the second stage in 2015. ABB has been benefiting from the strong demand in emerging markets over the past few years, helping the engineering concern fend off a slump in economic activity in industrialized regions such as the U.S. and Europe. Technically the stock has already rallied from 650-675 levels discounting the above rationale and hovering under profit booking zone, hence the upside is limited upto Rs 800, considering the recent run-up in the stock price we advice traders to avoid the counter.

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