Sugar stocks make for good long term: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com in an interview with ET Now talks about sugar stocks, Castrol, Britannia Industry.

What are the charts showing in sugar stocks?

Sugar had a nice 6-month rally, most of those stocks, especially I should say Bajaj Hindustan and Balrampur and then in a 3-week decline, they gave out all those gains. Now they started rallying again and they are falling again.

What this is telling us is that to make a certain gain, they take a long period of time, to lose that, they do it very quickly and the minute you start seeing sugar falling again with the market, you have be extremely wary. So I would not go bottom fishing in sugar.

What is the call on Castrol or Britannia Industry?

Defensives, portfolios may be thinking. Let’s keep stocks that are not going to fall in the event of even larger market decline and stocks that might actually go up. So Berger Paints, Castrol, all these stocks fall very much in that category.