Expect defensives to continue to outperform: Ashwani Gujral, Ashwanigujral.com

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his market outlook. Excerpts:

ET Now: What should one focus on -- the bullish part or the bearish part?

Ashwani Gujral: I do not think the second half was dominated by the bulls, though there was a recovery from the lows, which was because of a bad Friday. If bulls would have dominated, the Nifty would have closed 100 points higher and Bank Nifty would have gone up 300 points. Therefore, this is just a recovery.

7580 needs to get crossed substantially before we can say that the correction is over and chances are given the way the rupee is acting, the defensives will continue to outperform. There is more correction left in the other sectors, which are the cyclicals. The kind of action we saw in the afternoon did not smack a huge buying. If anything, it was basically some amount of short covering in the PSU oil space, which had seen climatic action on Friday.

Having said that, we need more evidence to conclude that the correction is over.

ET Now: What are your top trading ideas for tomorrow?

Ashwani Gujral: For tomorrow, BPCL is a buy with a stop of Rs 574, target of Rs 605. HPCL is a buy with a stop of Rs 400, target of Rs 421. Arvind is a buy with a stop of Rs 210, target of Rs 232.