8,056 on Nifty could be an invitation to initiate fresh shorts: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his view on what lies ahead for the market.

ET Now: What are the levels on Nifty you would be monitoring on Thursday?

Ashwani Gujral: I would first talk about Nestle. The stock opened at Rs 5,880 and it ended up at Rs 6,004, which means through the day there was buying on Nestle. The stock is not an F&O constituent.

Therefore, the stock can only go up if somebody has bought it. Thus, I believe that the stock is fairly close to its bottom. This is the time to get in regardless of what many others say.

As far as trade is concerned, the most likely outcome is that Thursday’s low will get taken out because the kind of pressure we have from that policy statement, we should get fairly close to 8,000 on Nifty in the next couple of days.

That will be the play you would be looking for because even as Thursday’s pullback from intraday lows looked fairly huge, the market did not show any follow through. Thus, Thursday’s low (8,056) becomes a trigger for a day trader to go fresh short on the market.