From the support of 10000, Nifty has seen a great bounce back to levels of 10300. Result date of Gujarat Election is also coming near day by day. However, expectations are that BJP would again win the hearts of State peoples of Gujarat. But it would also important to note how much Congress has improved its support from Gujarat State or how much they get seats even if they loose elections on result date. Although, at present level of Nifty which is around 10350, i think the risk is comparatively low as Nifty is consolidating for more than one month at present levels. But if Nifty crosses level 10500 before election result, then it could be some risky.
Takeover of Unitech By Government!
From the day of last trading session of previous week, Unitech stock has been rose over 30 percent. The news that has given this boost is of possibility of takeover by Government. On Friday, NCLT has directed Government to submit a list of 10 nominee directors for the board of Unitech. However, Unitech’s promoter Mr. Chandra has option to go in Supreme court over this takeover decision by NCLT.
As of now, it is not crystal clear that Government is really going to takeover Unitech Board or not. But as NCLT has directed the government after petitions against Unitech previous board, more chances are that company could seen a takeover soon.
Before this news, Shares of Unitech were quoting around Rs 6 with a market capital below 1500 crore and book value of around 36. Therefore, such action in stock was reasonable to see as this news could change the overall outlook of Real Estate firm which was earlier known as a giant player in its sector.
Although, from valuation point of view, i think level of up to Rs 11 is possible in stock on the basis of step taken by NCLT. But if the company seen any takeover by Government ( which is possible), then we could also see levels of Rs 14–16 soon. So overall, any fresh buying at present levels ( around Rs 8.50 ) could be some risky but it can also give a great reward to investors.
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