Global cues can drag CNX IT, Bank Nifty further down: Ashwani Gujral

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

ET Now: What is your own sense of how things will shape up in the coming week?

Ashwani Gujral: My problem is the the CNX IT. Bank Nifty was weak, so its falling is not surprising. CNX IT was the stronger index and that should have at least held up or even appreciated. Whenever CNX IT starts coming down, that means a global correction is on the way and if CNX IT is not going to stand against the Bank Nifty, then falling becomes very easy for the market.

So, some sort of sell signal has been given at least on Nifty and Bank Nifty today. They were in pullbacks, and those pullbacks have ended and now the momentum really depends on how the global markets react from here. Chances are if globally a correction is coming, then both of these indices should go lower. First target obviously is around 5980 and it is possible that this time that level gets taken out.