Good time to buy mid-cap PSU banks: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, chief market strategist, ashwanigujral.com, shares his stock ideas.

What is your take on the midcap PSU basket, the likes of Bank of India and Canera Bank?

These stocks have come down 30-40%. Now there is no value in going incrementally short. Even in the worst situation, Bank of India has not been able to break Rs 400 and today you may actually see prices fairly close to that. So, in case anybody had to buy banking stocks, this morning could be a decent buy zone with a short term perspective because by the evening, these stocks could recover. They have already had 8-10% falls yesterday. Chances are that today they could make a short-term bottom.

Banking stocks have corrected and have come to levels from where you can buy them. Unless we are planning to wait 5600 to 5650 on the Nifty, the market also is now getting fairly close to a buy zone, I do not see a major decline starting from here because major decline needs a lot more participation, a lot more people should be long for that kind of decline. So, around 5650, the market probably will start pulling back. So this is a good time to get into any of the stocks.