Agarwal bearish on Tata Steel, SAIL

Shubham Agarwal of Motilal Oswal Securities shares is bearish on Tata Steel and SAIL. According to the expert, if any pullback comes in the metals space, then that rally can be used as a selling opportunity.

Agarwal told CNBC-TV18, "If we take a relative strength chart on the metal indices, the CNX metal versus Nifty then it was at the previous low where it ended. So what we are seeing is that there can be a consistent underperformance that can come from the metal space and that is the reason why we have been initiating sell calls in metal space." He further added, "Some days back we talked about Tata Steel for a target of Rs 380. We still remain to be Put on Tata Steel for a target of Rs 320 on that. Even SAIL is something which has lost momentum and is in a long-term downtrend. So that is also a sell. So I do not think metal at this point of time should be a buying opportunity. If any pullback comes then that can be used as a selling opportunity. Disclosure: We might have recommended some of the stocks to our clients. I do not have any personal holding.