A correction can come anytime because the market due for one but whether it comes now or the rally gets extended before the correction happens is anyone's guess, said Udayan Mukherjee in an interview to CNBC-TV18.
Below is the verbatim transcript of the interview:
Anuj: Your thoughts on the kind of rally that we had and whether we could extrapolate that over the next one month or so?
A: It is quite conceivable that the market might take off even from here. I know there is some congestion around 10,100 mark. It has gone there, we have had a one reaction day with the market came back below 10,000 and we are sort of floating around 10,000 mark. It is an important mark maybe the market takes a bit of a time to digest it, goes up and down but it reminds me of 9,500-9,700 kind of zone for the Nifty. We did see the Nifty go up 9,700, react for a few days, test around 9,500 levels and eventually took out 9,700. I think the same thing might happen around 10,100.
There are very strong calls for correction now because even the bulls are getting a little worried about the fact that there is no correction in this market for the last seven months. So at 10,000-10,100 - even a lot of bullish voices might have started talking about the prospect of a correction. So it is conceivable that we do this 200 point consolidation again and maybe in a couple of days the RBI delivers the rate cut and the market feeds on the back of that to climb even 10,100 and expand this rally to 10,300-10,400.
The price action still remains very constructive. There is no problem there and while there was a little problem with the leadership when the ITC episode happened, I think that has been replaced by leadership from Reliance Industries, HDFC Bank, HDFC and Hindustan Unilever (HUL) and a combination of those stocks are still taking the Nifty higher. So a correction can come anytime because the market due for one but whether it comes now or the rally gets extended before the correction happens is anyone's guess.More to follow...