Expect 2014 to belong to midcaps: Ashwani Gujral

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

ET Now: How do you believe the next six to 12 months would be?

Ashwani Gujral: We are again at 6300 that has kind of been the ceiling for this market for last five years. We first went to 2200, then we retraced to about 4,500 which was 50% of 6300 to 2200; then we started finding support at about 5500 which was again 50% of those two levels.

We are getting ready for a big blast on the upside but the election event is only going to be probably a 10% event and a lot of it will start getting priced in.

People should expect the move of 20% which happened last time but more like 10% 6900-7000 after that the Nifty moves in a 10% range, while all of the midcaps and small caps they start compounding and several of them becomes several times of their lows.

Once the big indices make that large move then it is a catch up act so right now is the right time to have a good portfolio of quality midcaps because next year there is one theme that is going to be midcaps and small caps they will do the catch up act.

The large cap indices will probably finish their rally within a matter of few days if not weeks and after that the entire year is likely to belong to the midcaps.