Market may see further downside: Ashwani Gujral

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com in an interview with ET Now talks about his outlook on the market and small cap stocks.

Have you looked at the charts of Merck or Subex, probably some of these stocks like an Orient Green Power or a Suryachakra Power, which are higher on announcements?

These are not moves, which can be extrapolated. It is difficult to say that Merck will again move up 10-11% tomorrow. This could be one-off type moves, although Merck if it continues, then it can easily go up to Rs 30 but these are difficult days to even get into small caps.

On Subex, again it has tried to make some kind of a bottom broken out of about 63. In a good market, it can go up to 85-90 but in this sort of a market, that’s difficult to say because I have not given my view on the Nifty, this is a good time to give that, that the third day I was expecting a rally.

We did get some rally but the market clearly is not looking like it is rushing up, so today is a day, which kind of gives me some kind of indication that if the pullback is so weak, then that means there could be more downside. If there is more downside, then the small caps will also capitulate under pressure.