See mkt at 14,900 levels: Ashesh Gupta

Technical Analyst Ashesh Gupta said today’s market movement as a bear market rally and sees the Sensex going up to 14,100. He told CNBC-TV18 that if it breaks that level, then it may go to 14,900 levels.

He further said that if the markets go 15% lower from here, that would mean at least 3,500 would get tested on the Nifty and might even go down to 3,400. According to him, the Sensex and Nifty will head significantly lower from current levels.  

Excerpts from CNBC-TV18’s exclusive interview with Ashesh Gupta:

Q: What would be your call on the Nifty at 4,098? How would you trade the index?

A: Today, the news is not very good. I see this as a bear market rally. I see the Sensex going up to about 14,100. If it breaks above that, I see it going potentially to 14,850 or 14,900 levels. But from either 14,100 or 14,900, I see the market coming off sharply to retest a level of about 11,500 or so.

Q: How would that translate on the Nifty?

A: That is about 15% lower from here. I have been tracking the markets for a while as an amateur whose is interested in the stock markets. When I hear repeated calls that the Nifty will hold 4,000 or Sensex will hold 12,000, I am convinced that either the market would just not go to that level or will go through that level without facing too much resistance. So, if we see the markets going 15% lower from here, that would mean at least 3,500 would get tested on the Nifty. We might even go down to 3,400.

The reason why this would go down so much is because I am unfortunately not a fan of decoupling at all. The Dow has a move down 10,600 or so, which is about 6% lower from current levels. I expect the Sensex and Nifty to head significantly lower from here.