Stock market analysts have suggested investors to sell Unitech stock as there are full chances of a downward trend in this stock.

Today, the stock opened weak at Rs 122, against its last closure at Rs 127.75 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 6.06 and 19.64 respectively. The share price has seen a 52-week high of Rs 546.80 and a low of Rs 126 on BSE.

Stock analysts also suggested that if the stock fell below Rs 113, it may see more weakness. So the investors must sell the stock with a stop loss above Rs 126 to achieve a target that lies between Rs 118 and Rs 115.

After selling the stock in today’s session, the interested investors can enter the stock again, but only on declines.

Shares of Unitech traded weak on Wednesday (Sep 17) and marked its closure at Rs 127.75, down Rs 12.3 on the BSE.

There are expectations that crisis in the US financial market will hit the Indian realty segment hard. The sector was already wobbling under huge pressure as RBI raised the interest rates to curb inflationary data, besides restricting the fund flow in it. 

Telecom Italia has piped Norway’s Telenor to purchase 49 percent equity stake in Unitech’s telecom division and the both companies are about to reaching a contract whereby Unitech’s telecom business will be shifted to a new company in which Telecom Italia will invest around $2 billion for 49% stake and the remaining 51% will be held by Unitech.

On Sep 17, Unitech said no to the unfounded hearsays appearing in the press/media with regard to investment of Lehman Brothers Real Estate Partner in Unitech’s Mumbai Project.

By the way, the company hereby said that such rumors are unjustified and foolish.

On Sep 10, with reference to the previous declaration dated Aug 28, 2008 about Unified Access Services, Unitech said that the Department of Telecommunications (`DOT`) has issued the letters to its Telecom divisions for allotting 4.4 MHz of spectrum in 1,800 MHz (megahertz) GSM band with regard to Maharashtra, Mumbai, Punjab and Uttar Pradesh (East) Service Areas, respectively.

Unitech, on Sep 09 has lifted around Rs 12 billion for its telecommunication project from a syndicate of public sector banks led by PNB and Canara Bank.

Unitech Wireless will utilize the funds to purchase telecom equipment for the initial phase of its rollout. It has already started the route to obtain equipment from global telecom equipment majors ZTE, Huawei, Alcatel-Lucent, Nokia and Ericsson.

The company is also looking at sharing infrastructure of the existing telecom players in the country.