Market will resume rally only when leading groups resume it, says Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his views.

ET Now: The last two days it is the defensives which have taken centre stage does this last or is this par for the course?

Ashwani Gujral: See 7580 is some sort of a support which has survived day before yesterday and today. So anybody who bought Adani Enterprises today and did not realise fairly quickly that this is not the stock for the day, probably needs some more trading education.

It was clear since yesterday that defensives are coming back, that private banks and tech should be ready for a rally and that is a place that you should be while the rest of the market corrects and you are right that individual stocks have corrected quite a bit.

For any day trader stock should have been hit. There could be more such correction and while on a day-to-day basis the index may not reflect it because private banks and techs have fairly good weightage but clearly it gives a chance to all those over extended spaces like the realty index was going up 5 per cent a day. Now it is coming down 3.5 per cent a day so that is what you would expect when sharp rallies happen either they consolidate or they correct in a fairly quick manner.

This market will resume its rally only when the market leading groups are able to resume the rally. I do not think techs can take the market higher. They can maintain the market, they cannot take it higher.