Stay away from metal space: Choksey

Deven Choksey of KR Choksey Securities is of the view that one can stay away from metal space.

Choksey told CNBC-TV18, "Some amount of short covering has definitely taken place. But if you look at the metal space and the commodity pricing point of view what we are seeing is some amount of possibility of bounce back on which the short covering is happening into the market particularly in our market. I am not too confident at this point of time whether we will see stability into the metal price immediately because take a case of steel probably you will find Ukraine kind of countries producing at much cheaper cost than what it is been sold at this point of time in the global market. So maybe one is taking benchmark of the lowest sell price in the available market condition."

He further added, "Till January-March quarter probably we will not see big stability coming into the metal commodity per se and for that matter any commodity per se one will see good amount of pipeline inventory getting clear and from thereafter one will see stability into the metal prices and thereafter we should see kind of a confidence getting built into some of metal stocks for taking long position. But till that time we will have to stay away from these companies unfortunately."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Source: Moneycontrol