Nifty to slowly rally to 5400: Gujral

Excerpts from CNBC-TV18's exclusive interview with Ashwani Gujral:

Q: What’s the target for the Nifty now in this move?

A: I think on Wednesday we tested the 200 Day Moving Average (DMA) 5,150-5,155 a number of times and now we should be able to move beyond 5,230-5,240 and probably head into the resistance, which everybody has been talking about 5,200-5,300-5,400.

It’s going to be a slow move from here on you will see some down days but chances are that it will be continue to be slow uptrend till it ends. I think it will not end before 5,500 because just when everybody is skeptical, uptrend tends to last a bit longer than that.

Q: Can you open a long again at this morning above 5,200 and if you were running positions, would you start taking profits on upmoves or ride it till you see 5,400-5,500?

A: You would ride it as long as 5,400 is still to come. One can also take on fresh positions. We are getting lots of good global support, the earnings season is now out of the picture, so we will get more realigned with the global cues and if inflation gives us a bit more support, I think we could see a sharp rally, where lot more retail will start participating because till now the participation has been low though the index has moved up. So from onwards if we are able to move further you will get a lot more participation.

Q: Between the three heavy weights Bharti, Lever and Reliance which chart is looking strongest to you?

A: I think Reliance continues to look quite strong and it’s now consolidating between Rs 2,550 and Rs 2,700, once Rs 2,700 gets taken out, then we than start getting into the Rs 2,900 category.

Bharti also seems like it has finished its consolidation and now should head upto levels of Rs 1,000-1,050 because one would remember that Bharti has been in a correction for a long time and now it is finally breaking out, its fundamental performance is coming through. So that’s a pretty good bet on Telecom.

Now that the market is moving up, I think you may see Hinudstan Lever flattening out between Rs 225-250. This stock moves when there is jitteriness in the market. I don’t think FMGCs would move if you have a further rally from here. 

Q: A couple of stocks that were moving on Wednesday, Geojit if you track that one and if you like anything from construction now , between JP Associates and Lanco and all of those stocks?

A: Geojit has support around Rs 50 and as the market starts moving up there is activity in the stock broking stocks and it has now got resistance at around Rs 73 and then Rs 88. As retail comes back, double-digit stocks start going well.

In terms of construction, I think Lanco Infratech is looking like it is making a bottom but one must remember that in all these heroes of last year you will get trading rallies because they are already quite over owned. So support here is around Rs 450, resistance could come in at Rs 576 and Rs 633.

Q: Have you taken a look at Praj Industries charts?

A: Praj has now support at Rs 166 again seems like it has made some sort of an intermediate bottom. It has got resistance around Rs 220. If that gets taken out a move upto Rs 300 is also possible.