Avoid SKS Microfinance: Ashwani Gujral, Market Strategist

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com in a chat with ET Now talks about SKS Microfinance.

Talking about SKS Microfinance, do the charts show any kind of a weakness because if indeed the ruling is not in the favour, then it will be a bit of a dampener for SKS Microfinance?

Even if the ruling is in its favour, overall in the longer term - unless they figure out a good model - they will keep getting into this kind of a problem whenever elections are there or when Opposition parties need to soar up their stock.

But technically, yes, in case we cross levels of 780, may be we could try and test 900. But I would look at many other financials which have corrected - both PSU and private sector - if I have to be in financials. SKS, I would pass for a bit till these issues are sorted out because news flow can really take this stock down 8-10% in a matter of minutes.