Momentum upbeat; expect Nifty to hit new highs soon: 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: Wednesday saw another day of strong close. Sensex ended above 28,000-mark. How does this prepare us for the next couple of days? No doubt, there will be global uncertainty, but do you believe the rally could continue?

Ashwani Gujral: I would have been cautious, if the Nifty was trading at a 50-point premium. We are still at a 10 per cent discount and I cannot find out any reasonable explanation for this.

If traders are still short, then there are a more ways to go. But, in all this Greek business, what we have forgotten to see is that if you draw a line through all the highs from 9,100 on Nifty, the trend line has been crossed.
It has been retested by this Greece event. Given the momentum in mid, largecaps stocks, with the market kind of baking in the bad news, it appears that the real momentum may have started again. People will realise that the market may even be at higher levels.

But given the negativity, etc, that was around the market, it was a perfect time to bottom out. People should keep in mind that it is not about the next 100-150 point gains on Nifty, but this could be much more than people expect because expectations are so low that even 8,500 looks like a massive rally. But the sense from the chart is that the downward correction seems to be over, and now slowly we should build on the upside and possibly hit new highs at some point in the future.