STOCK ANALYSIS:UNITECH

STOCK ANALYSIS:UNITECH

I have been mentioning for last several days that Realty sector are the real pains now a days on increasing interest rates, but there are few stocks in this sector which has been corrected more than enough to digest this and now some positive correction is on the card as they are now at very cheap level. Unitech stands one of them.
FUNDAMENTAL ANALYSIS:-
The company has a market cap of approx 27,500 Crores with P/E 27.98 and EPS 6.06. In spite of increasing interest rates the company was able to give a satisfactory Q1. Unitech's Q1 net profit stood at Rs 423.3 crore as compared to Rs 365.7 crore in the same period last year. Total income in Q1 was up at Rs 1,054.4 crore as against Rs 899.7 crore. The company has more than 55 mn sq ft under construction.

TECHNICAL ANALYSIS:-The stock has significantly reduced from 546 Rs in Jan 08 to 135 Rs in mid July 08. Now consolidating in a range of 135-170 range, In mid July the price movement has taken a place of inverted Head and Shoulder reversal pattern indicating that the stock is being accumulated at this level. The stock now above 30 sma. The daily RSI and daily MACD are exhibiting positive divergence in the line of price pattern.

Simple Moving Averages

Days BSE NSE
30 164.61 164.82
50 182.52 182.64
150 294.61 294.78
200 318.28 318.48

Thus on fundamental and technical analysis we derive a conclusion that the stock is a worth in our portfolio at current CMP
ADVICE TO INVESTORS:-

Based on the above analysis it is believed that the stock appears to have made the intermediate bottom at the long term support level at 140-145. Traders can buy the stock at current levels and on pull back with a support at 160 level for the following targets.
TARGET:-
Based on above analysis targets estimated are
i) Short term – 180-185 Rs. for positional traders with stop loss of 154 Rs
ii) Medium term – 240-260 Rs. for investors
iii) Long Term – 460-500 Rs. for investors.

Note: - All above views are mine and before investing investors should Invest at your own risk.
GHANENDRA VEER VIKRAM !!!