Bank Nifty remains positive above 10500: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, talks about yesterday’s intraday recovery.

ET Now: What do you make of yesterday’s intraday recovery?

Ashwani Gujral: When everybody gets on the same side, recoveries become inevitable. When fund managers start giving 4400 as a target, then probably everybody is bearish and nobody is in the market. Given that, that itself should lead a rally and we saw a catalyst that came yesterday. Suddenly Brent falls $7. For the day as long as we hold on to 5300, it is possible that we test 5349 and then 5370. Bank Nifty remains positive above 10500, it can go up to 10579 and 10632. Now both these indices have been in narrow ranges. So if they break out and if they do it with reasonable volume, chances are that today could be a big up move. So far for the day trying to short commodities because the way they fell yesterday, there could be downside on oil related stocks like Cairn, we sell with a stop of about 315, target of 295. There has been some sugar export allowed yesterday. So you can buy Renuka with a stop of about 55, target of 61. Tata Steel we sell with a stop of about 570, target of 535. Aban we sell with a stop of about 515, target of 475 and Uflex we buy with a stop of about 185, target of 220.