Avoid bottom-fishing in any of the financials: Ashwani Gujral, ashwanigujral.com

The NSE 50-stock benchmark Nifty touched a low of 5254 midweek and bounced from there, and with it the trending phase of this leg of Nifty came to an end. It is possible that we now move sideways in the 5250-5650 range and the volatility reduces. This bear market is likely to be different than 2008 bear market. Nifty is likely to move in a 20% range with several sectors and stocks still making new highs, while Nifty goes through alternate upside and downside bouts. The rupee is likely to consolidate, coming back to retest the breakout zone of 61.80-62.

The RBI and the finance ministry continue to fight the falling rupee. I think some restrictions are valid with ganesh idols and TV sets being imported, it’s a criminal waste of foreign exchange. But it is also important that we boost growth, to get in more dollars rather than just restricting outflow. On micros, there is both the export and the import substitution trade which is happening in the market. So traders should try to get long on tech, pharma, metals and capital goods, while in weak markets try to go short on rate-sensitives and domestic cyclicals. The bear market is most evident in the banking space, avoid bottomfishing in any of the financials. Key weekly levels for Nifty, Bank Nifty and CNXIT are 5409, 9365 and 7781, respectively.