Buy Capital First on dips, M&M Financial may test Rs 400: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Anything that is NBFC is moving up. So, other than say microfinance, most NBFCs are doing extremely well. Capital First has recently hit fresh highs, so, I would not be surprised if at some point it gets to four figures. Use all declines to buy into this one."

"I would look for a turnaround because everybody is trying to go short on metals. I think Tata Steel showed some turnaround yesterday, even stocks like Tata Sponge. So not your average metal F&O stock, but outside the F&O stocks there could be action."

"M&M Financial looks the best of the microfinance stocks. However, overall, I don’t think microfinance is really showing you that sort of traction. However, it looks likely that we could head towards Rs 400 on this one," he said.

"Shorts got trapped on Adani Enterprises and chances are it has resumed its rally. Probably Rs 135 is next. DHFL, NBFCs, housing NBFCs, they are in a strong bull market of their own. So, I would not be surprised if at some point in time you get closer to Rs 485-500 as the longer term target. However, on all dips, all of these NBFCs should be bought."

"I think for today both Hindalco Industries and Vedanta should do fairly well. In fact all metal stocks should do well on the back of this because lots of them have short positions. However, clearly the aluminum based stocks are doing much better than the rest."