Don't see Nifty dropping much below 5750: CK Narayan, Growth Avenues Asset Advisors

In a chat with ET Now, CK Narayan, Growth Avenues Asset Advisors, gives his outlook on the market. Excerpts:

ET Now: A tempered week but the global cues also looked a bit shaky on Friday’s session at least. What do you do with the index? Would you buy on dips or would you believe that this slight downside can actually extend itself next week?

CK Narayan: It is going to be a bit of everything that you have said right now. The kind of reaction that we have had is largely owing to some sort of cues from overseas, no doubt, but overseas cues unless they are very very persistent, do not really have long lasting impact on our markets. They are largely there for a day or two.

So the fact that it came towards the end of the week and in a week when there was a lot of gains for most of the traders, led to some fair sized profit booking across the board, which is what led the index down.

So we have come down to the 5850 mark where there is some first level of support...and if we were to maybe start off in a weak note in the coming week, then maybe we can drip down to about 5750 where the logical support is and I see that as being a much stronger level of support. Therefore, I would not really be looking for the market to drop down any significantly lesser than 5750.

So if it were to go down to those levels with a stop loss of about 40-50 points, I would actually venture forth with a fresh buy. So to answer your question, there is a little bit of room on the downside to the tune of about 100 points if you were to begin the week little on a soft note.