Avoid sugar stocks as too many people are stuck: Sajiv Dhawan, JV Capital Services

In a chat with ET Now, Sajiv Dhawan, Managing Director, JV Capital Services, shares his views on sugar stocks.

ET Now: What is your call on sugar stocks?

Sajiv Dhawan: I am not looking at all the stocks that have been battered out of shape. If we are buying them, there are just too many people stuck. People always buy caution because it is always susceptible to news flow and even if we buy them now, we got to have may be a 5% to 10% stop loss.

Realistically, even if the stocks went up 10% there will be enough investors and traders a) either looking to short sell or b) looking to lighten up sugar along with the sectors like infrastructure. I feel not good calls at the moment because there is just too many people stuck with these stocks at every significant rally in the stock price.