Be deep and sharp on cyclicals becasue rallies have been fairly sharp, says Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his views.

ET Now: What levels would you be monitoring very closely and breaching of which would probably or could probably signal for the downsides?

Ashwani Gujral: This sort of a downside is a mild downside. Now we can go all the way up to 7470 and possibly nothing much will change but overall the policy sensitives, rate sensitives, PSUs they will take a bashing.

It will not look as bad because defensives will kind of hold up so that should be the trade long on IT, pharma and short on these cyclical. Basically it is a correction and be deep and sharp because on the cyclicals the rallies have been fairly sharp.

Overall on Bank Nifty below 15300 it is a buy, on the overall market anything between 7470 to say about 7550 that zone is possibly a buy. If you have to be long be long only on the CNX IT.