No fall on a bad day suggests our markets are strong: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his view on how should investors be positioned going ahead.

ET Now: What would you recommend investors at this point?

Ashwani Gujral: The market generally tests conviction. On Monday, it once again tested conviction. Now, the stop loss for Nifty has now moved to 8,195 from 7,950 level. Chances are that this test of conviction will probably help the market going forward. It is because all the weak hands are probably out. Chances are that only few people are now trapped with shorts.

As good news starts coming in, you will recover a lot of lost ground. The market that does not fall on bad news is a strong market. That is why out market will go up.

It would not go up because of the news flow, but it will go up because it did not fall on bad news. That proves that nobody has substantial long positions. Any sort of good news will get lapped up by the market and the market will go higher based on that.