Bank Nifty could have 300-400 points upside: Ashwani Gujral

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, talks to ET Now on Bank Nifty.

What is the call on Bank Nifty?

The risk on the downside is probably 150 points and in case there is something positive because this entire vicious circle will only turn when we start reducing rates. Although it may seem that that will make the rupee weaker and inflation will increase because of that, etc., but this vicious cycle needs turning around, foreign capital needs to come in to stabilise the rupee.

If that view starts getting taken, Bank Nifty could at least have another 300-400 points upside. That view is basically there just because the sentiment that is prevailing and generally December is not seen as a breakdown month. Everything should be done with a stop loss.

So going into the policy, it would not be such a bad idea to go long on the Bank Nifty. If nothing happens, we will probably just amble around towards 8300-8400 but if something significantly changes, then you could have a sharp rally both on Nifty as well as Bank Nifty.

From a trading point of view, that is the view you need to take at the lower end of the range. Rather than playing for the breakdown, you have to play for a pullback hoping that this range sustains till at least the end of December.