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Last Updated : Feb 17, 2018 12:41 PM IST | Source: CNBC-TV18

Sell Sun TV, Jindal Steel & Power; buy Bombay Burmah Trading: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com is of the view that one can sell Sun TV and Jindal Steel & Power and can buy Bombay Burmah Trading.

CNBC TV18 @moneycontrolcom

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Sell Sun TV with a stop loss of Rs 940 and target of Rs 900. Jindal Steel & Power has just started falling. That is a sell with a stop loss of Rs 256 and target of Rs 240. Bombay Burmah Trading is a buy with a stop loss of Rs 1,495 and target of Rs 1,540."

"Motherson Sumi Systems is now trading below its 200-day moving average and looking at an intermediate style correction. Once you decide to buy a bluechip, you should be ready to average. I would average it down because once the correction is over, chances are it will make fresh highs. So that is as far as Motherson Sumi is concerned."

"Although I would like to point out that you buy autos, auto ancillaries when a bull market is just about starting out. After two years of huge rallies if you buy stocks, chances are at best you could be stuck in a sideways zone or you enter into something and it starts to correct."

Close

"Mahindra and Mahindra (M&M), I do not think has really done too much. Basically, it is still in a range of Rs 570 to Rs 750. Now, we have broken Rs 750, so, once something breaks one end of the range, it often becomes likely that it will go to the other end of the range. So this is poor buying. He should not be very hopeful."

"The problem with sugar is that the cycle changes before you know and it then comes off rapidly. Balrampur Chini was at October 31 at about Rs 180, and from there it is about Rs 110. Now the way the stock is looking, it looks like maybe the cycle has turned. The best time to buy such stocks are when they are going bankrupt; in commodities that is the rule. Sugar, every three years, these companies are flat on their face, similarly with metals, etc. You buy them at the top of the cycle, then it becomes impossible to make money."

"Get into stocks which are overall good stocks but in correction. So add a couple of NBFCs like Bajaj Finance, L&T Finance, add a couple of tech stocks, particularly things which are doing well, things like 8K Miles or Sonata Software and NIIT Technologies. So make a mix of both these spaces and chances are over the next five years this sort of portfolio should do well," he said.

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First Published on Feb 17, 2018 12:39 pm
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