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Ali On Content / 04 Jan 2010
[INSERT_1] Kingfisher Airlines, India’s largest domestic airline owned by Vijay Mallya of the United Beverages Group, currently operates on domestic as well as international routes and therefore will be the primary beneficiary of rise in air traffic. The company is even contemplating to raise its fares by 25 per cent from January 2010. Moreover, to strengthen its balance sheet the company is in talks with some PEs to raise USD 400 million. According to one of the technical analysts, one should accumulate it now as a break-up is expected in the counter. On the derivatives front, the counter has witnessed a decent rise in the open interest, volumes as well as price and this indicates a long build-up in the counter. Thus, based on the company’s fundamentals as well as F&O cues, investors with medium-term perspective can take exposure in the counter.
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