Wait and watch auto stocks: Rajan Malik

Rajan Malik, Head Equities, Private Client Group, MF Global in a chat with ET Now gives his views on auto stocks.

ET Now: With the exception of Tata Motors, almost all the other auto stocks are looking slightly weak. Are you of the view that the spring time for autos is over?

Rajan Malik: Everybody anticipated diesel car prices to be raised, but that does not seem to have come about. But, that anticipation, might have resulted in most people buying cars before the budget itself.

One normally expects April to be a slightly weaker month. Even seasonally adjusted April and May figures might turn out to be weaker than anticipated. So, in that sense we do expect some disappointment. So, we would wait to buy into some of these counters.

Technically I believe Hero MotoCorp would look the best if one gets prices around 1950-1970 for a possible bounce back to about 2150-2200.