From hereon, the market could be seeing sideways movement, says Sandeep Shenoy of Anand Rathi Financial Services.
Sandeep Shenoy of Anand Rathi Financial Services sees the market hovering in the broad range of 5,600 - 6,000 for the next two-three months given the lack of positive cues.
"We are not seeing any positive triggers for the market from short to medium-term. We will have to wait for Q2 results, which are 45 days away. From hereon, we could be seeing sideways movement," he told CNBC-TV18 in an interview.
Shenoy is hopeful that the current rally seen in the market may take it to higher levels, but adds that the market is still not out of woods. He advices to trade cautiously.
Below is the edited transcript of Sandeep Shenoy’s interview with CNBC-TV18
Q: Would you say the worst is over for the market? Would you advise people to participate in this rally or would you say that the large part of the game might be over?
A: For the next two-three months, the market would be oscillating between 5,600 and 6,000 level. Few days back an irrational piece of selling happened and that entire level got breached. But we are still of the opinion that the illogical selling which had come because of multiple negative factors which were in sync with each other had resulted in that, but now all that has eased.
We should be looking at positive factors which could drive the markets. Having said that, we are not seeing any positive triggers for the market from short to medium-term. We will have to wait for Q2 results, which are 45 days away. From hereon, we could be seeing sideways movement.
We have seen a good surge happening in the last two days. There is a good degree of possibility that surge may take it to the positivity or maybe illogical level on the positive side, but one should be careful because we are still not out of woods. We may not see those deep levels that we have seen a fortnight back, but we are not going to be saying that thumb the table and go long right now.
Q: Can you say that the bottom has been made for the market, now at around 5,100-5,200 on the Nifty?
A: We are of the opinion that bottom has been made, but we were of the same opinion few weeks back and that irrationality came. One thing about market is that there is a logical level, you stick to that. Market may behave illogically, but ultimately it comes to that logical level and finds its bottom in the medium-term. We are confident that the bottom has been made.
Q: Do you think that the worst might be over for the rupee and it has possibly bottomed out especially with the recent announcements of the FCNR swap of around 3.5 percent etc, there is a lot of inflow of dollars which is now expected?
A: Our houseview is that yes, the pain point in the short-term to medium-term is over.