Nifty should soon test 8,450-8,500: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his view on whether we are headed for a bigger correction.

ET Now: What is your view on the market?

Ashwani Gujral: There is nothing special about the Greece news. Had this news come at 9,100 on Nifty, you would have hit the bottom. But given that you are coming out of a 12 per cent correction, there is nobody really long to get worried about. Hence, I would think that Monday’s low will hold and the index has tested conviction of the market at a fresh base of about 8,200. So that base now becomes a stop loss. With the weak longs getting taken out, some out of short positions coming in a fresh. We should sooner or later head towards 8,450-8,500.

ET Now: What are your top ideas for today? How do you propose one should trade?

Ashwani Gujral: See staying with strong stocks helps. Bajaj Auto has continued its run. That is a buy with a stop of Rs 2,520 and a target of Rs 2,650. Motherson Sumi is a buy with a stop of Rs 490 and a target of Rs 525. The stock has incidentally made a low and from here you could see all-time highs on the stock. Lastly, CPCL is a buy with a stop of Rs 165 and a target of Rs 182.