Bearish on Visa Steel: Vijay Bhambwani

Vijay Bhambwani, Author, CEO, BSPLindia.com, in a chat with ET Now, gives his stock recommendations


What is the call on IMFA, Rohit Ferro Tech and Visa Steel?

All of these are likely to suffer overhead supply because they are small cap, small price shares. In a stock like say a Visa Steel, even liquidity is a problem because it is not very well traded. So the stock can actually bounce all over the place on very poor volumes. I do not think these especially Visa Steel would qualify even as a tradable stock, forget about an investment grade category. IMFA seems to be somewhat relatively better poised as compared to Rohit Ferro or Visa Steel but there again it needs to consistently trade above Rs 365-370 levels to overcome the previous significant resistance. Only if the Nifty was to cross the previous high would all these stocks actually start to give you above average returns failing which they can actually sink far lower.