Hold MRF, expect 4-5% rise: Gaurav Bissa

Gaurav Bissa of LKP Securities told CNBC-TV18, "Though MRF has witnessed a significant correction from around Rs 40,000, I feel that there can be a bounce seen. Relative strength index (RSI), is in the oversold zone and the momentum indicators have also quite oversold. I feel that there can be a bounce that can be seen."

"The quantum or the magnitude of the bounce right now it is very difficult to gauge as it is trading below its other major averages. So we may see 4-5 percent jump from these levels somewhere around Rs 38,900-39,000. However, the question would be whether these levels are sustained. If the time horizon is of say couple of years then I feel that one may make decent amount of returns but then again there will come a time when there will be long phase of consolidation. It may kind of trade in a range, so you will have to have patience," he said.

"These levels are quite lucrative, so somebody wants to enter into this stock these are the decent enough levels. If some one is already holding on to this stock I would say hold on. In couple of years one might make decent returns."

Disclosure: Analyst has no personal holdings in the stocks but is possible that he may have recommended to his clients at LKP.