Nifty gives strong signals; 8,000-8050 levels in sight: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, share his view on how the market behave in the coming sessions.

ET Now: Do you think that we could takeoff from where we have left Nifty (at 8236) on Tuesday or will there be some mild amount of recovery?

Ashwani Gujral: There is always a recovery once the index sees drastic fall of similar to Tuesday’s.
But the sense I have is why we are blaming the poor man (Raghuram Rajan), just because of the disappointment. The market started falling before the rate news.

That means that it has got nothing to do with him (Rajan). The market just had topped out. In such a case, even if he (Rajan) would have come with a 50-bps rate cut, we would still have been at lows.

Once market tops out, no news can take it higher, given the way banks have collapsed, Banking stocks outperformed on the way up and now they are outperforming on the downside. What people should initially play for is 8,000-8,050 (on Nifty). I do not think you will find major support till that level comes in.

All rallies towards 8,280 now need to be sold. The market has collapsed on a daily, weekly, monthly basis. Hence, a fresh downtrend is enforced on all three timeframes. That is a fairly strong signal.