The weakness seen for most of the week crept into Friday's trade as well. Global cues added to the sordid story. Nifty closed at 5,120 down 13 points, while the Sensex shut shop at 17,465 down 62 points.
Speaking to CNBC-TV18, Technical Analyst Ashwani Gujral said buying conviction is missing from the markets. He added, “There was a short covering from a strong support level. But the buying conviction is missing. You could say that we are out of the woods once we start trading around 5,550. You could have a Nifty rally of 100-150 points. But these are all pullbacks, which are likely to get sold into,” he added.
Technical Analyst Ashwani Gujral is positive on ITC and HUL.
Here’s how Ashwani Gujral views the stocks on board:
On HUL and ITC:
ITC and HUL are much better stocks to buy than getting into any of those construction or realty kind of stocks.
On VSNL:
It has come down 50% and this Rs 440-445 sort of level is the kind of final support before it breaks down further to about Rs 350. This is the kind of fate that a lot of heroes of last year are likely to suffer. A lot of people get stuck at higher levels and now there is lots of distress selling. The charts need a long time to form bases and then move up from here. I would not expect any kind of recovery coming in too soon.
On BHEL:
BHEL is a couple of hundred rupees lower. Anyone who buys today should buy at least from a one-year kind of a time frame.
Source: Moneycontrol.com
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