PSU stocks next multibaggers; buy PSU index ETF: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, fund manager, ashwanigujral.com, shares his views on the market.

ET Now: How would you approach trades in the PSUs?

Ashwani Gujral: PSU stocks are the next multibaggers. For anyone who still has not bought the PSU index ETF that has been launched should buy it.

OMC and PSU banks are a part of it, although the PSU ETF only has 10 shares and only one of them is IOC. PSU clearly is the theme.

If you see across the board, there are massive gains on mostly all PSUs as nobody owns them and likes them, but the stock prices are telling a different story.

The unilateral call is that PSUs have turned the corner. As far as the market is concerned, it is sideways choppy market.

It is a mild correction. It is tough to trade, but some or the other sector flies. Today, in the middle of the day PSU and oil marketing started flying that was the catch of the day. Overall, I do not think anything significantly has gone wrong with the market as such.

The problem area which is opening up is CNX IT. We may have some sort of trend day. For the moment, that trend day is appearing to be on the downside.

Today, the index is coming out of the downside of the low of yesterday and day before yesterday. The market could accelerate on the downside on Monday or Tuesday at some point. This is where we have short positions.