​Market tests bulls’ conviction, eyes 8,550 on Nifty: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his view on where the market is headed towards.

ET Now: What would you be doing now because the Wednesday’s fall would have caught a few people by surprise? Is this the start of a downtick? would that be your trading stance?

Ashwani Gujral: It depends on whether we get follow through because the market is clearly testing bulls’ conviction of and if there is no follow through and on Thursday itself Nifty starts trading above 8,400, then maybe this was another buying opportunity because we have to understand that the market has turned course.

Till the time Nifty starts closing below this 8,250-8,300 zone, it is a pullback.

If we get up to 8,250-8,300, possibly that will be the 50-day moving average for Nifty. So chances are that in case we are able to hold 8,300, this remains a pullback and once other markets recover, or they get into pullback mode, we should cross 8,550.

Often we have seen that these one-day jerks sometimes do not have the kind of follow through that is needed. Even on Wednesday, there was not that great momentum or furious selling. Although the market looked 2 per cent down, the momentum was clearly missing. The hope now is that the index would turn somewhere in the next 50 points and make another attempt towards 8,550. Other than a few individual stocks, we are not going short on the entire market.