Dealers bet on mkt retracing on bad global cues

The buzz is that still you need to be cautious at these levels. You may see a bit of pullback rally from the 200 DMA of 4,650 because that is where you have seen some bit of buying as well and yesterday it was some case of short covering as well. CNBC-TV18's Nimesh Shah reports.

But the flows are still negative at least from the larger institutional point of view. The FIIs continue to be net seller in the cash market though there was some bit of buying support coming periodically from the insurance companies.

The general sense coming in from dealers is that even if the Nifty has to rally couple of 100 points from here on, it will likely be an exit rally for most of the guys who are stuck because still there is lot of pain in system in terms negative flows, in terms of concerns from the global markets. So most of the dealers are betting on that the news from the global markets will be worsening from these levels and the markets will retrace back.

The general feedback from the dealer is that even if there is rally of couple of hundred points use this as an exit opportunity a wait on the sidelines for the time being because there is no big news coming in and even the flows are negative from larger institutional point of view.