Kunal Bothra of LKP Securities told CNBC-TV18, "The metal stocks are showing some good signs at least in terms of short-term trading, names like Sesa Sterlite and Tata Steel. Even JSW Steel today managed to show some good price performance on the early charts as well as on a short-term timeframe, some of the indicators are showing some bullish price action. Whether it is a turnaround for the sector or not it will take a lot of time because over the last one year these stocks have gone through some serious correction. Names like Tata Steel from Rs 550 levels, it is below Rs 350 level. So it is a correction of almost 40-50 percent for these names."
"You don’t see a bottom happening in a hurry. I believe that the early signs which were needed for the sector is there but whether it takes time and turns around or not is something to worth waiting for," he said.
"Even for the oil & gas, I think looking at the rally in the last few days for ONGC especially as well as Reliance Industries, there seems to be some good positive price action, the short-term indicators are indicating that the bullish trend may continue for a couple of percentage points further but once again whether it is a turnaround for the sector or not, it is probably a couple of weeks away from that."
Disclosure: Analyst has no personal holdings in the stock and it is possible that he may have recommended the same to his clients at LKP.
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