Quite difficult to cross 5350-5400: Ashwani Gujral

In an interview to ET Now, Ashwani Gujral, ashwanigujral.com gives his view on markets tomorrow.

Given that you track and trade the Bank Nifty very closely, what would be your sense about what happens on Friday, in the near term perhaps and also 5200 as a level for the market?

It is a very sticky kind of market and maybe on Friday, we will get a retest of 5170-5200 type of levels but clearly a lot now depends on global factors as well. Locally unless inflation comes down and banking starts participating, it is slowly becoming quite difficult for the market to cross 5350-5400.

So, the real key is the banking stocks and a new leg down in banking has started. If that is the case, then banking has the potential to lead this market lower.

And finally the breakout that we saw could end up being a false breakout. But, if banking stabilises, then there are odds less than 50% where we may hold onto the support and still try to re-challenge levels of 5300-5350 again, so entire key now is with the banking sector.