New reforms announced by government not taking the market anywhere: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his views on markets. Excerpts:

ET Now: 0.5% up in the green. We have stayed at around or above 7900 for most part of the trading day today. How does that augur for any index trades that you would take right now?

Ashwani Gujral: Today being a different market had Reliance gone up 8-10% on yesterday’s news, had ONGC maintained its gains from yesterday. Apparently, ONGC was the biggest gainer from the reforms yesterday and why is it trading at 407. This is something to look at that HP, BP, entire oil space is down. If such great diesel deregulation has happened, then why are all these stocks down and that will remain a problem with this rally because if energy is not participating wherever something is announced, that starts seeing selling, then it will be limp along rally, intraday declines, then pick up and decline. This is not a market where reforms have been announced two days in a row. So yes, basically look at maybe 100 odd points on the upside, very difficult to trade but no question of new highs. Bank Nifty can continue to do its own thing but I do not think the reform is really taking the market anywhere. So as long as you have to remain long, it has to be Bank Nifty and Nifty and CNX IT are basically kind of neutralish.