Good time to invest in laggards- Suzlon, ADAG, RCom: Ashwani Gujral

Tick mark the strongest large cap laggard for us which has potential to move up in the short term...

Ashwani Gujral: See all of these stocks which have huge short positions Suzlon, ADAG, Reliance Communication, Reliance Infra, all the infrastructure stocks now they have stop going down beyond a point. So any kind of say 5% to 8% to 10% type of rally may get the shorts to cover and that would lead to a 15%-20% rally nobody saying that these stocks cannot go back to those lows again.

But they have been beaten up so much that there are signs that some of these stocks could move up 15% to 20% do it in a very quick fashion because there are lots of shorts which are there at lower levels. So I think ADAG the sentiment has been so bad that may be a week's worth of rally would not be out of question.

Suzlon we have seen it could head up to 58-60 again a lot of infra stocks after that quick declines that we had because of the scam basically what that ensures is that all the weak holders are now taken out. So anybody who is now getting in has a lot of margin of safety, the perceived risk is so high but the actual risk is really quite low so any kind of positive news can just take the stocks up 15%-20% just like that so this is a good time to develop positions here because the risk is so low.