Flat market: Don't worry, its not exhausted yet say experts

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Flat market: Don't worry, its not exhausted yet say experts

It's been a day of consolidation for the market as the Nifty run into some resistance around the 5000 level. The market witnessed minor selling, in-sync with global peers. Index heavyweight Reliance Industries was the star performer while TCS, post its numbers, dragged the technology space down.

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It's been a day of consolidation for the market as the Nifty run into some resistance around the 5000 level. The market witnessed minor selling, in-sync with global peers. Index heavyweight Reliance Industries was the star performer while TCS , post its numbers, dragged the technology space down.

The Sensex was down just 14.58 points at 16,451.47 and the Nifty fell 11.5 points, to close at 4,955.80.

Sudip Bandyopadhyay, MD and CEO, Destimoney Securities is optimistic that the market has not reached its exhaustion levels yet. "Domestic news flows will be important for India but eventually we will be guided by what happens in the global market and next couple of days is going to be very important," he adds.

Deven Choksey, MD, KR Choksey Shares and Securities feels that the market will have to take some amount of correction and thereafter look up.

"If we are looking at somewhere 4850-4800 kind of a level, at the level at which the market starts getting some amount of consolidation. Then we could think of market going above 5050-5100 level. The range has now shifted to little higher band which is between 4850-5050 or 5100 levels," he adds.

According to Choksey, the market would trade in a range little bit on upward bias with some small correction coming in at least in next two-three days and thereafter again stabilise and start moving up in due course of time.

However, he is quick to add that the market movement is largely dependent on news flow and rupee appreciation now.

Sudarshan Sukhani of s2analytics.com advises that it is wise to take profits now but this is not necessarily a bear call, its just a word of caution. At the same time, Sukhani also adds that its too early to say that this rally is over, but some of the things that could have taken place and pushed the rally and the confidence of the bulls did not happen today.

"To that extent the bullish fervor has to come down and cool down then the stoppage of this rally has come - atleast for today has come right in the middle of a very strong resistance level 4950-5000. This gives the impression that the resistance is actually likely to hold atleast for some time," Sukhani elaborates.

Nasrin Sultana

nasrin.sultana@network18online.com