Metal stocks may see further decline: Kulkarni

Shardul Kulkarni, Angel Broking feels that metal stocks may see further decline.

Kulkarni told CNBC-TV18, "Buying is definitely not recommended in case of metals. If you see the charts of Hindalco, from Rs 125 to Rs 104, the stock has come down in about 10 trading sessions. So you are clearing seeing there is strong selling pressure in case of metal counters. Steel Authority of India (SAIL) is already down 4% in today’s trade. But the stock was at about Rs 95 just 8-10 days back and now it is at around Rs 77-78. So you are clearing seeing that the metal counters have very strong downside. We feel that going forward if the BSE metal index closes below 10000 I feel you will see that 9500-9700 levels may be tested on the BSE Metal Index. So 9500 would be a six month low. 9200 incidentally is the 52 week low for the BSE Metal Index.” He further added, “So going forward we are not at all bullish on metal stocks at least from a trading perspective. Investment can be a different bet because if you like a stock at Rs 100 you will definitely like the stock at Rs 70. But I think from a trading perspective clearly the stocks are in a strong downtrend and I would avoid any long positions from a trading perspective.”