Buy metal stocks at this point: Ashwani Gujral

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com in an interview with ET Now talks about the commodity stocks.

From a fundamental perspective would you still play contrarian in this market fall and perhaps buy some of the commodity names?

Commodity stocks tend to fall a lot and they equally tend to bounce back a lot. Commodity prices are a cyclical but overall the big super cycle in commodities which started in 1999 still continues.

Companies like Hindalco, Tata Steel, Sterlite are getting battered black and blue. This is a time to pick up these stocks and when commodity prices come back that would be the time to sell. It is the time to buy into these beaten up metal stocks. If tomorrow the rally continues you will see sharp bounce backs in these stocks.

Sterlite at 118 is used to sell at about 190-200 so if you collect these stocks during this time, you can hold on. I think there should be upside even on a trading basis.

If tomorrow the rally continues you will see sharp bounce backs in these stocks. So whatever is beaten up the most, in case it is not capex heavy or if it does not get impacted by rates then I think it is worth buying into metals at this point.