Don't get into midcaps which are making 52-week lows.: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral of Ashwanigujral.com, shares his views on midcap space.

ET Now: Is the time to go bottom fishing into midcaps still long time away?

Ashwani Gujral: If this kind of decline continues a lot of stocks will test their 100-day averages, may be move into this zone of the 100 and 200 day averages. This is the right zone to buy if you want a serious risk reward on a medium term basis.

Sometimes the market will be high, sometimes it will be low but the best strategy is to wait for this sort of a decline and then enter like Tata Elxsi which comes down to 340. This is the kind of zone when you should be buying. They will crack midcaps, crack fairly badly and that is what creates the opportunity in the stronger midcaps, do not get into midcaps which are making 52-week lows.