Buy Tata Coffee: Ashwani Gujral

ET Now spoke to Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, on his views on Tata Coffee.

Tata Coffee giving you returns of 40% in just 7 days. Is it time to take home the money?

Just a warning on commodity stocks and commodities. When commodities are at lifetime highs the stocks do very well but in case coffee starts falling, the stock will fall at double quick speed.

So I would much rather buy a stock where the commodities are at a 5 year-10 year low rather than buying a stock where the commodity is at a 34 year high so while you can ride it and ride will be good till Rs 950 or a Rs 1000 but the good news is already there.

So people need to have strong strict stop loss of about Rs 675 and then chances are that it may head towards Rs 950 or Rs 1000 but get out before it becomes a crowded trade.