Need to trade below 94-95 levels on crude: Ashwani Gujral

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, in a chat with ET Now, shares his views on crude stocks.

What is your call on crude? Any stock calls based on that?

We are more worried about Brent crude. 119-120 is probably significant resistance. So far there are no signs of crude prices declining substantially. Just hope that commodity prices will come down. We need to trade below 94-95 levels on NYMEX. It does go below that but does not sustain. Similarly on Brent crude, we need to go below $108. So, till the time crude does not decline substantially, I do not think the oil companies in India will benefit much because most of them are PSU and have subsidy problem.

Cairn can be bought but from a longer term perspective because it also does not seem that the crude is likely to run away to 140-145. Chances are it is likely to remain in this 90 to 100 zone for NYMEX and maybe 110 to 120 for Brent.