Use rallies to exit long positions, says Ashwani Gujral

In an interview with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his view on the level Nifty is headed towards.

ET Now: What is your own sense and how the trade would pan out for the rest of the week?

Ashwani Gujral: For Nifty, the important number level is 8,100. For Bank Nifty, it is 17,500. The market is losing steam at higher levels. On Monday, except metals everything else went down. Once 17,500 on the index breaches, we are ready to go short on banks.

As I said, the market is losing steam; it is very close to levels where shorts would get triggered.

If you get rallies from 8,100, you should use it to exit long positions rather than build new ones. Overall, I feel you could at best have 8,100-8,250 range on Nifty and at worse the index may see a break down at 8,100. If that happens, we could have further declines towards 7,950.