Bank Nifty can head up 300 points; see 10-15% upside in metals, NBFCs can rally: Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Metals are correcting sideways, not really correcting down and that sometimes is an indication that they are probably not done yet and will move higher. So, I would think once the market starts moving higher, also global market, maybe post a consolidation starts to move higher. Metals is a global story, so you need global markets to do well for metal stocks to move higher. However, overall, these are positive stocks and I won’t be surprised of another 10-15 percent upside on most of them." 

"M&M Financial Services recently crossed its 200-day moving average. So, chances are along with Bharat Financial which has turned sharply yesterday, we could have microfinance moving up. So, NBFC, clearly including Indiabulls Housing, all of them could have a bit of a rally today given that financials and banks are now turning around," he said.

"Kaveri Seed is in an uptrend and chances are we could see Rs 590-600 because the F&O ban didn’t probably impact the trend. So, once things come out of the ban, generally the trend tends to accentuate. So, this is showing upside." 

"Banks are turning because ICICI Bank had almost reached its 200-day moving average. Axis Bank has been trading weak for last four or five sessions, so, given that, the market’s logical target is about 9,180-9,200, these banks have to move for the Bank Nifty to move higher. So, in the next couple of days, ICICI Bank and State Bank of India could participate and you could get your 200-300 points move on the Bank Nifty. Let us see if that policy decision comes in. However, just based on that, you should not be doing things, you should be doing them because the banks have short positions and they have reached some sort of support."