Monday, 24 November 2008

Below Rs 190, DLF can slip to Rs 90: N Pillai

Neppolian Pillai of Modern Shares & Stock Brokers is of the view that below Rs 190, DLF can slip to Rs 90.

Pillai told CNBC-TV18, "Unitech and DLF are not looking good because I believe the paper asset slips faster so we have seen the share prices of real estate companies collapse already about 80%-90% from their top but for the physical assets, they will take time to collapse and unless the real estate prices crashes another 30%-40%, I don’t think these stocks are going to look up, level wise.

He further added, "If Unitech slips below Rs 26 which is where the 200 day month averages are, then once it goes below that just don’t forget calculating the lower level I think its going to completely give up its strength below that if not it has already given up and DLF is very crucial level today at around Rs 190 and if it goes below that its going to fall another Rs 100 to about Rs 90 levels, so their up move is going to coincide with the larger correction within the physical asset prices and whenever they crash that’s when the stocks will bottom out, so there is a long way to go because the builders are holding on to their prices and not cutting enough and only when that happens these stocks will look up."

Source: Moneycontrol

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