Sudarshan Sukhani of s2analytics. com stated that the stock of 'United Spirits Limited' (USL) may decline to Rs 450.
Sukhani stated, "MphasiS is more of a reversal trade. I am assuming that it stemmed its decline, stopped falling and chances are that maybe it will start a rally. It's different from Cipla, which is already giving signs of life. In Mphasis we are anticipating that something good will come out of it because it's no longer a declining, it's breaking some minor trend lines also. So MphasiS is relatively high risk trade probably not a good idea in the morning. If the market starts showing some signs of strength, I would be looking to buy MphasiS. It's a better among the midcap IT stocks."
"United Spirits stopped going up when it touched Rs 750-760 which was the resistance area. I would assume that this is going to come back to Rs 450, no matter what the markets do, its going to start its decline and here is a short sell that can be taken this morning. One doesn't have to wait for a bounce or for rallies in the Nifty or consolidations. This stock has faced significant resistance at the Rs 760 level, has begun a decline which should take it all the way back," Mr. Sukhani further added.
United Spirits Limited (USL) has revamped the top deck management as it speeds up premiumization of brands to ward off rivalry from worldwide peers on its home turf.
The most recent developments at the globe's largest spirits manufacturer also refurbishes the second-line of leadership to deal with the challenges in a fast growing market regions.
Now, United Spirits Limited will have two deputy presidents who would be reporting to Capoor.
Amrit Thomas, ex-Unilever boss, has been promoted to the place of deputy president in charge of marketing.
Paramjit Singh Gill, a group expert, will be the other deputy president looking after sales and operations.
Country's speedily growing drinks market is turning younger and more ambitious, giving sufficient play for worldwide brands.
London-based International Wine & Spirits Research (IWSR) stated that the country's overall branded spirits market climbed at a slightly lesser speed of 6.5% in the year 2011, but imported sales rose around 30% even though on a smaller base.
The company has sold 114 million cases for the financial ending March 21, 2011.
USL has 21 millionaire brands in its folder and enjoys a 59% market share for its first line brands in the country, and a total market portion of 55%.