ET Now In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his outlook for some stocks. Excerpts:
ET Now: They had a torrid week, but what does the chart suggest for stocks like Hindalco, JSPL and possibly Tata Steel?
Ashwani Gujral: As far as Hindalco is concerned, it will be tough to break the recent lows that we have made.
The idea is that with a Rs 10 type of a stop even at current levels it is worth buying. Often the worst gets discounted in the market and sometimes things are better than expected. So as far as Hindalco is concerned, you would want to buy into it, but JSPL is not worth buying. Tata Steel again around 490-500 is a fairly decent level to get into that.
ET Now: Good going for some of these names, particularly GAIL which shot up in Thursday’s trade, but ONGC is not too far behind as well, how would you play the oil and gas stocks in the near future?
Ashwani Gujral: There is again this Ukraine issue which is out in the global markets now and you could be looking at a gap down on Monday.
I think GAIL can still get up to 470. A 15% rally on HPCL and IOC is still possible, and ONGC can get back up to 465-470. The energy space can do very well in the next series.
ET Now: The PSU names particularly the likes of BEL may be got that fillip because of the FDI in defence, but strong moves that came in this week for stocks like BEL, how would you look at a BEL for example in particular?
Ashwani Gujral: FDI in defence is not new news. What happened was that the stock technically became oversold in a zone where chances are in the 1700-1800 zone. There were institutions piling into the stop.
What we saw yesterday was just the result of all the supply getting soaked up and suddenly the stock begin moving higher, but clearly as I keep saying the PSU space is one of the leaders of this bull market and chances are that once BEL crosses the recent high of 2320, we should probably look at 2800-2900 on BEL.
For BEML I am not so sure. The reason for that is that it has corrected so sharply that it has almost shaken out a lot of confidence that people had.
ET Now: Arvind, it paused for a bit may be in the Wednesday session, but again a bit of surge that came in on Thursday has it done a bit too much its 12%-13% and therefore would you probably advice booking profits if you have them in Arvind?
Ashwani Gujral: Buying is out. Now there are two things you can do. If you do not have it you just wait for a decline, if you have it you should tighten your stops to about 275.
Often stocks can surprise on the upside as well as downside. So let us give it the benefit of doubt and see if it can do some more and keep updating stop losses to the previous day’s low.
ET Now: What about your recommendations for the viewers?
Ashwani Gujral: Idea is a buy with a stop of 158, target of 172. IOC is a buy with a stop of 356, target of 378. Andhra Bank is a sell with a stop of 76, target of 64.
ET Now: They had a torrid week, but what does the chart suggest for stocks like Hindalco, JSPL and possibly Tata Steel?
Ashwani Gujral: As far as Hindalco is concerned, it will be tough to break the recent lows that we have made.
The idea is that with a Rs 10 type of a stop even at current levels it is worth buying. Often the worst gets discounted in the market and sometimes things are better than expected. So as far as Hindalco is concerned, you would want to buy into it, but JSPL is not worth buying. Tata Steel again around 490-500 is a fairly decent level to get into that.
ET Now: Good going for some of these names, particularly GAIL which shot up in Thursday’s trade, but ONGC is not too far behind as well, how would you play the oil and gas stocks in the near future?
Ashwani Gujral: There is again this Ukraine issue which is out in the global markets now and you could be looking at a gap down on Monday.
I think GAIL can still get up to 470. A 15% rally on HPCL and IOC is still possible, and ONGC can get back up to 465-470. The energy space can do very well in the next series.
ET Now: The PSU names particularly the likes of BEL may be got that fillip because of the FDI in defence, but strong moves that came in this week for stocks like BEL, how would you look at a BEL for example in particular?
Ashwani Gujral: FDI in defence is not new news. What happened was that the stock technically became oversold in a zone where chances are in the 1700-1800 zone. There were institutions piling into the stop.
What we saw yesterday was just the result of all the supply getting soaked up and suddenly the stock begin moving higher, but clearly as I keep saying the PSU space is one of the leaders of this bull market and chances are that once BEL crosses the recent high of 2320, we should probably look at 2800-2900 on BEL.
For BEML I am not so sure. The reason for that is that it has corrected so sharply that it has almost shaken out a lot of confidence that people had.
ET Now: Arvind, it paused for a bit may be in the Wednesday session, but again a bit of surge that came in on Thursday has it done a bit too much its 12%-13% and therefore would you probably advice booking profits if you have them in Arvind?
Ashwani Gujral: Buying is out. Now there are two things you can do. If you do not have it you just wait for a decline, if you have it you should tighten your stops to about 275.
Often stocks can surprise on the upside as well as downside. So let us give it the benefit of doubt and see if it can do some more and keep updating stop losses to the previous day’s low.
ET Now: What about your recommendations for the viewers?
Ashwani Gujral: Idea is a buy with a stop of 158, target of 172. IOC is a buy with a stop of 356, target of 378. Andhra Bank is a sell with a stop of 76, target of 64.
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