Expect levels of 6,050 to break and market going down: Ashwani Gujral, Ashwanigujral.com

In an interview with ET now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, gives his views on current outlook of market. Excerpts:

ET Now: Would it be advisable to stay light ahead of policy on Tuesday and then play for expiry?

Ashwani Gujral: I do not understand this concept of 'play for expiry'; the expiry is no event.

As far as Tuesday is concerned, we are sitting on a 20 per cent rally — all indicators are showing negative divergence. You should be out of your long positions; you have broken previous intermediate highs which should have been some sort of a stop.

Tuesday’s events, given the position of the market, will lead the market lower, even if it has no rate hikes or if it goes flat. The market doesn't have enough strength to move up. The odds are in favour of levels of 6,050 getting broken and the market going down.

ET Now: There will be pockets that would have gained and some reversals to come out. Considering that there may be some profit booking do you think that could happen?

Ashwani Gujral: All stocks that have gained, like Larsen or PSU banks like BoB, will now start coming under pressure as the market has tried getting past 6,200-6,250 levels. However, there has been no strength; hence profits will start getting taken and momentum may increase in case the lower end of this 6,050-6,250 range is broken.