NO MORE METAL!!!! ITS TIME TO START INVEST IN AUTO STOCKS

TO GET INTRADAY TRADING TIPS ON 31 MAY 2021 WHATSAPP ON 7772909587📞📲

"BUY TATAMOTORS  FUT 2 LOTS ABOVE 325 TARGET 329/340 SL 316"

We have now cut down our exposure to metals. We were bullish for the past 4-6 months but now we think that the rally has peaked. Aluminium or copper might do better than iron ore and steel and so we have cut down our exposure to steel and moved to autos. Now it could be a contra call, now we have been recommending to buy autos. We think that the valuations for autos are now at a reasonable level. We have seen that the commodity price pressure has impacted their gross margins and is now going to ease as they have started taking price hikes. So I feel the margin pressure for auto companies will come down over the next couple of quarters. If the monsoon is good, then the rural demand might also be strong. Land prices have moved up, which also will have some rub-off impact on wealth perception in rural areas. So all these factors are nicely aligned for auto sector to do well over the next 6-9 months. We are neutral on IT. Chemicals and agrochemicals, which are exporting to US, will see good demand rebound. US may grow in the range of 6-6.5% but we may be in for some surprise. If that happens, Indian exporters will be in focus.UPCOMING RESULTS-ITC & PVR