Mar 16, 2017 12:09 PM IST | Source: CNBC-TV18

Market to consolidate for a few days; but bull rally to continue: Gujral

The market, having seen a big rally on Tuesday after BJP's landslide victory in Uttar Pradesh, will remain range bound for a few days going ahead, said Ashwani Gujral of ashwanigujral.com. This does not, however, mean that the bull rally will come to an end, he said.

He recommended buying on every dip.

Gujral said the US Federal Reserve's hawkishness is already well-known and may not affect the bull rally as it is already built into the price.

"The Fed event is going to be a non-event," he said.

The US Fed meets for two days, starting Tuesday, following which it is widely expected to raise key rates.

Although, Ambareesh Baliga, a market analyst, reminded that the fundamentals have already been left behind by the market, and the rally is solely running on the liquidity.

"The liquidity that is being seen is sooner or later going to lead to a bubble. So it would be better for investors to start booking profits now," he suggested.

The market ended flat on Wednesday with slight losses on the indices. While Nifty moved 2 points lower ending at 9,084, Sensex fell 44 points closing at 29,398.

The biggest reason for the consolidation today, according to Ashwani Gujral, was the IT stocks, that dragged the indices. He said the IT sector will not let the market move ahead, unless the banks and Reliance Industries don't start firing.

Investors should look at every opportunity to exit from the IT space due to uncertainty coming Trump's proctectionist polcies and lack of growth in the sector going ahead, said Dipan Mehta, Member, BSE and NSE.

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