Will remain long as long as Nifty holds 7900: Ashwani Gujral

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

ET Now: Today you had mentioned that even if we opened gap down, it might not be a bad idea to keep selective longs as well because eventually over the course of the next five or six days, we may show a bit of a bounce. Are you holding on to that stance and what are the specific names that you are recommending?

Ashwani Gujral: During the day, we saw a bit of a bounce and my strategy was that in case we are able to hold on to 7900 but I will remain long and possibly look for the market to move up. However, below 7900, we have taken some short positions. Now what is happening here is I like to look for how the market is reacting to good news. Yes, Infosys' came out with good news but the CNX IT is 100 points lower from its highs.

TCS is trading at the lows of the day so obviously somebody is selling good news. HPCL and BPCL are trading at lows of the day. So that for me is not a very comforting sign and it appears that maybe global headwinds are becoming way too strong for our markets to sustain at higher levels. So below 7900 you should not be long.

Going short is a personal preference and whether you are aware of how to do it. But overall in terms of BT/ST, HPCL is a sell with a stop of 515, target of 485; TCS is a sell with a stop of 2690, target of 2620; JSW Steel is a sell with a stop of 1180 and target of 1135.