At current levels, Kingfisher is a good buy: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, talked about Kingfisher Airlines.

ET Now: What is the call on Kingfisher Airlines?

Ashwani Gujral: Kingfisher is not going out of business as it is going through a restructuring phase. This stock will move up in times to come along with the ongoing restructuring activities. So right now, it is a good price to get in and maybe you will get a rally back to say about levels of 40. If crude starts coming down further, maybe this could easily rally up to levels of 36-38. So right now it is at a level where it is moving sideways. It is in that 23 to 28 type zone. So if you ever thought about buying Kingfisher, this is the right price to buy it. Whenever things stabilise, 40 bucks is something you will get. Also on Jet Airways, 175-150, that was the 2008 lows and we are around 250.

So again downside is probably limited and on the upside we saw Jet Airways going up to 800. Again aviation is a cyclical business. When things turn, they look extremely good from 250, easily 400 can happen but these are stocks that you hold on, they are not in uptrends. These are just contrarian plays which have got hit.