Buy Dredging Corporation, Ceat, VIP Industries: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "My advice is stay miles away from PSUs because when the prices go up, when good things happen, you are hit with disinvestment. What has happened to ONGC over the last many years? Remember the price where divestment happened? So, divestment is good for the government, it is not good for the shareholder. What is happening, basically more stock is coming into the market; if there is more equity, where will the price go? Finally down. So, PSUs are totally untouchable because the biggest risk is each time something goes up, you are hit with divestment. Do not get into that, don’t participate in divestment, let these stocks get bombed out and only then you get trading rallies." 

"Dredging Corporation overall is a fairly strong PSU. This is a buy with a stop loss of Rs 700 with a target of Rs 735. This is more related to linking of rivers, etc." 

"Ceat is a buy with a stop loss of Rs 1,430 and target of Rs 1,500. VIP Industries is a buy with a stop loss of Rs 194 and target of Rs 206," he added.