Reliance will go below 860: Ashwani Gujral

Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, talks to ET Now on various stocks.

One quick call on Reliance and whether or not this move that you have seen right now is just short covering or is there more to it?

With 1100 stocks down you need a Reliance to move up to hold this market higher. What happens is that generally one large stock is pulled up so that the rest of them can be smashed up that is the way indexes are managed.

I would call it index management more than Reliance showing some great move. Yes 855-860 was a support, from there it has bounced back but I do not think it is likely to cross 900 once the stock has been unloaded, Reliance will also go down below 860.