Avoid fresh buying into Zee News: Karvy Stock Broking Ltd

Ambareesh Baliga, VP, Karvy Stock Broking Ltd, in a chat with ET Now talks about Zee News.

Is there any kind of an activity build up that you would probably see here in tomorrow’s trade as well and do you track Zee News as a stock in particular?

Yes, in fact we have recommended Zee News because of this demerger at levels of around 57-58. Even at around 70-72 it made sense to buy Zee News because of this demerger because for every 19 shares of Zee News you were getting a residual portion of Zee News shares as well as four of Zee Entertainment. So today’s price looking at whatever it is right now, it works out to nearly Rs 80-81 of the original Zee News. This means that even those who have bought yesterday are still sitting on decent profits and the way we look at it is this residual portion of Zee News is fairly valued at levels between 18 to 22. So I think the current level is decent price for this stock So I don’t recommend buying fresh right now but those who had bought in the last couple of days possibly could look at booking out to a certain extent and take profits home.