Wait for fertiliser stocks to fall back: Ashwani Gujral

Ashwani Gujral, Fund Manager, Ashwanigujral.com, in a chat with ET NOW talks about fertiliser stocks.

Any trade that you may have identified in any of the fertilizer names the likes of JNFC, Zuari or even a Coromandel?

Well, over a long periods of time Coromandel although a word that does not get impacted by urea policy etc. but around current levels keeping a stop of about 245-250 it has a potential of getting a 80 buck rally towards levels of 340. Also something like GSFC which has corrected from higher levels that seems to be finding support around levels of 355-360.

These stocks they tend to create wealth and go up over time rather than those trading stocks of Rashtriya Chemical and Chambal Fertilizer etc. although they are also at long term supports around 65-70 if you can get into Chambal, RCF 45 is a good price. You should avoid trying to get into the stocks once they have appreciated 25% and wait for them to fall back on some kind of negative news.