Wait for a bigger fall to buy metal stocks: Anil Manghnani

ET Now caught up with Anil Manghnani, Director, Modern Shares and Stockbrokers Limited, to get his views on the metals stocks.

| Feb 23, 2010, 06.10 PM IST

ET Now caught up with Anil Manghnani, Director, Modern Shares and Stockbrokers Limited, to get his views on the metals stocks.

The kind of trend we are seeing in the metal stocks? Do you think it can continue? How would you play on this pack?

A little bit more upside is possible purely based on the dollar index. In the immediate short term, the dollar index can correct a little bit more. I don’t think it’s the end of the dollar move upwards but since it moved from 74 all the way to 81 plus it needs to give back some so that giving back some could help commodities, you have seen crude already back at 80.

So, that might help some of the stocks, but I would not just go out and buy them now I probably use this rally as sort of a paring down positions and then wait for a bigger fall because I feel there will be a resumption of the dollar rally even post 81.5 may be to 83-70-84 sort of levels. When that happens, these would have corrected sufficiently enough to warrant a buy. Right now, there are more sell on rallies.

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