Avoid Hindustan Copper: Ashwani Gujral, Market Strategist

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, in a chat with ET Now talks about Hindustan Copper.

What is your view about Hindustan Copper and any other counter from the metal pack is probably worth looking at right now?

They probably need a couple of days worth of consolidation. Maybe they need to correct a bit before you enter into them. I had just given short calls on some of the metal stocks. Talking about Hindustan Copper, I do not believe post the FPO the price discovered will be higher. Generally if the liquidity is low, the price is often higher than what it actually should be. So you need to be very careful here - NMDC was 550 and it finally settled at 250.

So if you want to play copper, the best way to do it is probably Sterlite or even Hindalco and avoid Hindustan Copper till it comes out with the FPO and the price settles down. On Tata Steel, etc., the corrections up to 625-630 probably provide good entry levels.