KFA, wait and watch: CK Narayan, Sharyans Resources

CK Narayan, President Treasury, Sharyans Resources, in a chat with ET Now, gives his views on Kingfisher Airlines


What is the call on Kingfisher Airlines?

All the airline stocks are trying to stay afloat in terms of the share prices whether it is Jet or Kingfisher. SpiceJet of course now has additional problems which has seen it actually cave in and give way beyond the support. So we should largely discuss only KFA and Jet. Between the two, Jet is certainly slightly better placed but if you see the charts of both KFA and Jet, they are not very dissimilar and it is priced around Rs 41.5 right now, KFA. It has a support zone between Rs 38 to Rs 40 which has held several onslaught.


Similarly for Jet it is at about Rs 440. Both of them are trying to hold onto those supports and the near future, at least the medium term would really depend upon whether these onslaughts on these supports at say around Rs 38-39 for KFA and Rs 430-440 for Jet will really survive. If they do survive, then you can see some upside action. For KFA, I would wait till it is about Rs 46-47 to see that its head is above water. Similarly for Jet, it would be somewhere around maybe Rs 500 plus. So both these stocks have the work cut out for them. We need to just wait and see if they are actually able to do this. Until then, it is a pot shot you are just trying to take a call that the support will particularly survive. It is a touch and go thing right now.