Mkt downtrend clearly established

CNBC-TV18’s Executive Editor, Udayan Mukherjee–

The downtrend continues and gathers steam and momentum with every passing day. It looked for a bit this morning that maybe there would be a technical pullback after all but as has been the case with the last few attempted pullbacks it’s come to nothing and we have seen the Nifty slide back to a new low for 2008. Even below 4,200 mark, which is being some kind of an emotional or technical support for the market but that too has been broken we went down to 4,180 and we are not trading very far away from that. So another bad day for the market, another couple of percentage points gone.

The way some of the put writers covered up their 4,200 puts yesterday 15 lakh shares got cut you knew that there was very low conviction about 4,200 being held. So people were hoping against hope that level of 4,220, which held out the day before that level of 4,200 ballparks speaking of that level that may actually hold out. But this is all more hope than conviction at this point in time we are in a fairly well and trenched downtrend, levels are breaking with effortless ease none of the pullbacks are lasting for more than a couple of hours.

We remain in a very difficult kind of market condition at this point and all that talk of the market recovering and giving you rallies is actually more hope and people are hoping that the bears would cover positions and book profits. Therefore some rally would miraculously occur. But otherwise I think the environment is still very bad and the downtrend is very well established.