Institutional buying necessary for markets to move higher; focus on smallcap stocks: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his view on how the trade may pan out for markets going ahead.

ET Now: What does the move on Monday suggest about the coming sessions?

Ashwani Gujral: It depends on how strong the institutional buying is. If we do not see buying at higher levels in a day or two, then there could be a problem and that is what we have been facing at 8,550 on Nifty.

That said, the set up is clearly there. The conditions are improving and it is just that we need some more good news to push the market higher.

Once 8,550 on Nifty is crossed, and we get on to the other half of the 8,500, the market could gain further momentum. I can say this, given the way mid and smallcap stocks are moving. So overall, the strategy should be to be more focused on the smaller stocks because the largecap stocks need a big money to come in and that still remains a question mark.

That may demand Nifty to move around 100 points higher from prevailing levels.