Avoid SCI and Mercator Lines: Ashwani Gujral

In an interview with ET Now, Ashwani Gujral, Chief Market Strategist, ashwanigujral.com shares his views on Mercator Lines and SCI.

What is the call on Mercator Lines and SCI?

If commodities keep going down, shipping will keep going down. So people need to remember both these industries are fairly strongly correlated and till they have stopped falling, till they make some kind of a bottom, I do not think you should be touching the shipping stocks, although you should also remember that the world cannot work without shipping but commodities need to bottom out before shipping tends to bottom out. Shipping Corporation has broken all supports, maybe could get up to 60-65. Mercator Lines 18 to 20 bucks is possible. Great Eastern Shipping, it is bit of a nothing stock, has not done much over many years and now maybe it could test levels of 210-215.