Buy large cap, underowned stocks in metal space for trading long term: Harendra Kumar, Elara Capital

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital, shares his views on the current outlook of the metal space. Excerpts:

ET Now: What is your view on the metal stocks?

Harendra Kumar: There has been a price uptick and some volume improvement in the local domestic market. The metal space currently was oversold with little institutional ownership. When you get some positive news, you get sharper bounces in particular sectors; precisely why the market looks very circumspect as it is overowned with lot of institutional ownership. If any bad news or withdrawal comes in, the market is susceptible to crack.

Thus, if you are looking to trade for the long term and with very little risk, then you should look at the large cap, underowned stocks over the next one quarter.