Marc Faber, the investor who has made a name on pessimistic market calls, said Wednesday he believes stocks are "extremely oversold" and could be poised for a rally.

To be sure, the editor and publisher of The Gloom, Doom & Boom Report confirmed he believes the stock weakness at the beginning of the year was just the start of more bad things to come, but in the nearer term, he is more bullish.

"The market in February became extremely oversold, and from this extremely oversold position, we can have a relatively strong rally," Faber told CNBC's Squawk Box.

The S&P 500 ended February down 0.42 percent, extending a three-month losing streak in its worst start to a year since 2009. The Dow Jones closed the month slightly higher, up 0.3 percent.

In particular, momentum stocks got hit hard, and can move higher from current prices, Faber said. The oil sector could "easily rebound" by 10 to 20 percent, he added.

"That could drive the market up to maybe around 2,050, but I don't necessarily see new highs, and if new highs happen, they will happen with very few stocks participating," he said.

But Faber is not so not gloomy: After that near-term rally, he expects another decline around the globe.

The global economy is slowing down considerably, he said, and it is unlikely the United States can maintain a better growth trajectory in the face of weakness elsewhere.

First Published:Mar 2, 2016 9:44 PM IST