Markets are still quite confused and uncertain: Sajiv Dhawan, JV Capital Services
November, 16th 2011
The advice from me is pretty much the same. The last time we said that there was no real reason on the bullish side why the Nifty would cross 5300-5400 levels and that remains the same.
The situation in Europe still remains uncertain. The markets are still quite confused and uncertain and until that uncertainty goes away whether it's domestic or global, the markets will be very volatile.
Yes, the trend is on the downside. There will be a lot of fresh shorts in the market, which will be built up yesterday. The momentum definitely is on the downside for the next day or so but unless the situation deepens globally, I do not see why the Nifty should slip back to that 4700 level or 4800 levels.
There is no real pressure from the market players to sell down to those levels. I know there will be talk of 4700, 4500 now, now when the market is very close to that psychological 5000 level. But probably over the next few days, you might find a bit of calm.
Domestically high inflation, high interest rates, poor corporate results will keep the markets a bit nervous and suppressed but we will probably at best bounce back to 5100-5200 over the next couple of weeks and maybe sink another 100 points on the Nifty at worst.
That's only assuming that the global situation does not deteriorate and there is no further bad news domestically.