Nifty must cross 5276 to become positive: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, talks about the market outlook today.

A virtual yesterday, are Indian markets looking oversold and should traders brace themselves for a mind recovery?

5200 is a strong support. Yesterday we saw some kind of climatic action. Now while you could have a recovery, the recovery will be fairly narrow and probably will at max go towards 5400-5420. Between this 5200-5400 zone, it is possible that we have a range between 5200 and 5400 before we take that kind of move.

The kind of depression we are in, everything on a weekly basis, daily basis is oversold and it is from such situations that often some kind of rally starts. Even on a global basis, we are looking a bit oversold and any trigger can lead to a small rally but overall trend still remains down.

For the day, Nifty must cross 5276 to become positive, resistances at 5357 and then 5458. On the downside, you have support at 5175 and 5094. Bank Nifty must cross 10480 to become positive. 6194 for CNX IT, out of the three it remains the weakest. Now midcaps will continue to see selling pressure even if there is some kind of pullback.