Hold Ramco Cements, says Rajat Bose

Rajat Bose of rajatkbose.com told CNBC-TV18, "Ramco Cements has been moving up for a fair bit of time and for the last 5-6 quarters. In between it posted a top around Rs 280. Now it is actually in a consolidation mode between Rs 250 and Rs 200 where the 200-day moving average is located."

"So, I would suggest a stop loss below Rs 200, this looks like moving to Rs 370 over a period of one year to about 15 months. I would suggest a hold," he added.

"Frankly, metals being a commodity business, I am not actually advocating anyone to buy anything in that. Hindalco Industries may be performing well, but personally I have sold Hindalco, Vedanta and some steel stocks also. The point is this that this is a commodity business, the product over which the managements do not have any control, what kind of price they will rise to, where the price rise will stop."

"Talking about steel, they sustain in crutches like antidumping duty and so on and so forth. So, my suggestion is that if you are too focused on investing in SAIL then I will give you technical levels, that is between Rs 50 and Rs 45 and it will rise up to Rs 57 to about Rs 62. If that happens, fine. Otherwise, I will completely concur as to why metals and especially in a commodity business, these people generally tend to increase their scale of operations so that when the commodity boom happens, they can make money. But when the downturn happens, they either do not shrink or do not find any opportunity to invest the capital elsewhere. So, capital allocation in a commodity business is a very poor game."