Atul Badkar of Edelweiss Securities advises traders to buy Hindalco and Tata Steel on dip.
Badkar told CNBC-TV18, “Metals as a pack was underperforming for quite a while. The minute we have seen that 5,890-5,900 being crossed, all the metal stocks were rallying, Hindalco, Sterlite particularly, Hindustan Zinc even Sesa Goa . Tata Steel was the one that rallied the latest but it has done a pretty decent catch up.”
He further added, “At the entire metal pack, very clearly there is an increase in open interest and longs are coming to the system left, right and center. I would not suggest at this stage that the market is taking any aggressive positions in metals from a trading perspective but within the entire pack I think Hindalco looks quite right for a move right upto Rs 140-145.”
“Tata Steel has done a very good move in the last three-four days. We had a long call on that name particularly. There will be some consolidation across the pack and we eventually move higher because metals have underperformed for a long time and this catch up I do not think will stop immediately. There is more upside. Hindalco, Tata Steel particularly are good buys-on-dips. I would not suggest taking any long positions immediately though.”