Experts see mkts headed downwards ahead

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS See 10-yr yield between 6.5-7% in Q1 FY10: HSBC India See Sensex at 7500-9500 with downward bias: Alchemy Cap FII flow to stabilise when global mkts steady: Dipan Mehta See strong resistance at 2875: Sudarshan Sukhani ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Maruti Industrial Carbohydrates Ltd | Hero Motocorp | Larsen and Toubro |

It was an action packed day on Dalal Street with the indices see-sawing through the session. Nifty closed at 2,784 up 17 points, while Sensex shut shop at 9,149 up 83 points.

 

Mehraboon Irani, Centrum Broking sees markets moving in a decent range of 700-800 points something on the Sensex before it ultimately breaks down. According to him, there is a negative bias and markets are going to move downwards.

 

 

 

Rahul Mohindar, viratechindia.com said markets are stuck in the same trading band for the last couple of weeks. "Markets are stuck in a zone where we probably are not going to see a new low in a hurry and there is not so much confidence to breakout into a new high. So at such a situation it is no point going heavily long or short expecting a straight studded ten-day or twenty-day type upmove or down move."

 

He sees much more pain in stocks like DLF on the downside where levels like Rs 120 breakdown. One might even test something between Rs 95-100, he added. On the upside, he feels that stocks like Maruti , Hero Honda , L&T are still looking good from a medium term perspective.  

 

On Q3 earnings:

Irani said there were some pleasant surprises, some of numbers were better than expected but on the whole Q3 earnings were in line with expectations. "Quite a few companies have disappointed very badly as far as the December number goes. The conference calls which have been made in October post September results and the way they have changed their stance just two-three months later doesn't speak well too much about the management. They have come out with numbers which have beaten all analysts' expectations on the lower side."

 

What has changed after the Satyam fiasco?

Irani believes that there could be a fall in the share prices of some companies especially companies where there is a question mark on the corporate governance issue already. He is of the view that there has always been an element of suspicion in certain companies but the fact is that in a bull market nobody questions. Today in the market people are looking at the numbers with lot of suspicion and if something happens, it could possibly act as a further spoil spot as far as the valuations go, he added.

 

Irani feels that there is a need for companies to become more transparent.

  

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