Avoid varun Shipping: Ashwani Gujral

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, in a chat with ET Now, gives his views on shipping stocks


What is your call on the shipping space?

The downside is low because shipping space has been correcting even before the market started correcting. Mercator lines often find support at Rs 35-36. The stock generally tends to rally up to 60-65 kind of zone. So these are good levels to buy the stop loss is close. Varun shipping is not such a great stock, it is in a down trend. It recently broke below key levels of about Rs 26. So Varun is something I would avoid but Mercator Lines is something that you keep and forget and wait for the shipping cycle to turn. It has not done so well in the past may be ABG Shipyard in a similar kind of space is much better stock.