Prudent to stay short on Bank Nifty: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his views on markets. Excerpts:

ET Now: What is your sense on the index as well as stocks?

Ashwani Gujral: We are heading for the lows of the day, basically 7800 the support that was there, a buying zone that was there, that buying is getting exhausted.

Chances are that today itself we should take 7800 out and then all those spaces where people have been hiding, they will have to sell and come out because if 7800 goes even the rate sensitives the outperformance of the Bank Nifty etc. may not sustain.

For the moment it appears 7800 is going and we are probably pre-empting a move in the global markets. Idea should be to not look for domestic positive news and get long. Look at the way the rallies are getting sold into all over the world and for the moment we are short on the Bank Nifty that is right position to take because people are long.

Instead of going short on the metals, if you are short on the banks, the fall there may be a bit harder.

As far as BT/ST is concerned Tata Communication is a sell with a stop of 380, target of 362. HCL Tech is a sell with a stop of 1700 target of 1650 and NMDC is a buy with a stop of 154 target of 168.