Nifty holds above 4570 level

CNBC-TV18s Executive Editor, Udayan Mukherjee - It’s not being a bad day for the market, not too much by way of volatility and we are still holding about 4,570. Slipped from the highs of 4,600 for the Nifty for the day but not given up all those gains and the Sensex too is holding about a couple of 100-points. So far so good for our markets the breadth has been good but otherwise it’s being quiet. It’s not being a high volume day or any kind of excitement as such on the screen but a pullback we expected and a pullback we have got at least so far.

It will be okay if we can hold on to these gains by in the next one-hour. What we don’t want to see now is to just slip away, give up all those gains and close a weak 15-20- points up on the Nifty, which I don’t think would be good. Because we have got so much help from the global markets, there has been short coverings its been extremely low volumes and that tells you that there is still not enough conviction in the market. If we had conviction today with the kind of global help that we have got and the attendant short covering, you would have seen a much bigger pop and a sustainable pop backed by good trader activity but its been very lack-luster, just Rs 35,000 crore of trade with an hour to go, so we will not get any where close to the Rs 60,000 crore, which is what we used to see last week. So it tells you that people want to see more before they jump in and having burnt their figures last time around getting excited at the pull back, this time around they will wait and watch and not jump in till the market tells them that its good for a much bigger rally out here.

That’s the take away from today’s trade; so far so good you have had the short covering. The Nifty discount has gone brattled down from 30 points to 3-5 points, so its easy to see what is been going on but I still don’t think we have seen enough conviction in today’s up move because that was the case when we would have seen slightly better volumes there.