Oil and gas stocks recovery is not for real: Ashwani Gujral, Ashwanigujral.com

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com shares his views the market.

ET Now: On Friday, it was a table thumping buy on the oil and gas stocks. Where do we go from here on that basket and, on the markets at large, which in today’s session have made a bit of a recovery?

Ashwani Gujral: First of all, this recovery is not for real. What you are getting is a choppy action, where the odds of the downtrend continuing for the next few days is possible. Hence, we should not get too carried away by that. But oil marketing probably is in a different lead, which means that there was climatic action. It was as if this oil was going to 150 on Monday itself. Hence, that sort of action generally tends to take out a lot of froth in a very short period of time. Chances are that oil marketing and oil stocks in general may not have that much downside. But market still needs to go down. The best this pullback will do is maybe 7570-7580. Post that, we should head lower. but it is not very easy to trade corrections or pullbacks, unless you were in the IT space. It continues to look positive. Hence, it is still good enough to hold on to IT. Rupee is depreciating and maybe will do so some more. Hence, it is not the time to go long on cyclicals.