Go short with Bank Nifty on rallies: Ashwani Gujral

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, talks to ET Now on market outlook.

What is the call on markets right now?

I took a short Bank Nifty trade which I have now covered because short trend is down but this market is not very overleveraged. So one keeps getting short covering rallies which can be used to sell again but 4700 should come in now.

Now the problem is that everybody has banks, PSU or private because consistently the advice was to keep on buying these stocks. So now this is where the flap is and this is where it is going to come out from.

Chances are that Bank Nifty gets to about 8500-8600 in a worst case type scenario. So be careful with banking because these are the people who own all those infra loans and realty loans.

Every infrastructure sector which is in trouble, banking stocks will have some linkage. That is the weaker part of the market. So I would like to short the Bank Nifty on rallies.