Oct 15, 2016 03:45 PM IST | Source: CNBC-TV18

Buy NBFC stocks on dips, Voltas may test Rs 500: Ashwani Gujral

Ashwani Gujral of feels that Voltas may test Rs 500.

Ashwani Gujral of told CNBC-TV18, "Some stocks will not go through a deep correction and they will continue to move up. NBFC probably inflation played a role and you saw Can Fin Homes, Dewan Housing etc. Stocks which have turned today and given you 5-6 percent moves chances are may not participate as much in the correction because correction would be large stocks, the once where institutions and FIIs have participation."

"NBFCs in all declines need to be bought, even stocks like Bajaj Finance etc have corrected quite a bit, L&T Finance Holdings, so across the board there should be buying and I believe another leg of upside may start if inflation remains tepid and more rate cuts start getting expected."

He further added, "Voltas is another one which is now beginning to move up. Generally, Diwali sort of period good for consumer goods, so probably look for targets of Rs 500 out here in the next 2-3 weeks."

"Natco Pharma seems to have turned around. This used to be erstwhile winner and chances are it completed its correction, we should look at levels of Rs 700 again in next couple of weeks and with defence and the kind that we can see around us Bharat Electronics is likely to resume its rally. It has done it consolidation, so maybe if you buy around here target of Rs 1,400 is easily possible," he said.
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