Ashu Madan, National Head, Religare Securities, said, the correction overdue and the kind of immature complacency, which was attached to this Reliance Power issue has propelled this fall. He said there is not much excitement on the cards because not many will get a major share of the oversubscribed numbers.

He is bearish and the next couple of months inspite of being budget in place, he would play this market sell at every rise.

Excerpts from CNBC-TV18's exclusive interview with Ashu Madan:

Q: Tell us the kind of cut that you are seeing in excess of what you anticipated in one single day of trade and what are you advising clients currently?

A: No, honestly this was due, rather I would say overdue and the kind of immature complacency, which was attached to this Reliance Power issue has propelled this fall. All along when one is talking to people on the street everywhere, there was complacency and everybody was having their textbook calculation in hands, 'while the Reliance Power issue is on, the market would be good, positive and there would be continuous momentum and post that we could see some correction'.

So I don’t see that it could become easy, otherwise everybody would take pot full of money home with these kind of calculations. That was an immature complacency. Currently with what is happening in the global markets we are bearish and I still feel that they will continue to reel under pressure and we would see further tremors in the US markets. I could see it spilling over to the credit card deposit also, so something’s are not going to be rosy overseas.

Q: On that subject of the Reliance Power IPO like you said there was a sense of complacency, a lot of people were betting on the grey market premium, which has subsequently cooled off a fair bit. On that subject, what would your call be from here on and the kind of numbers that people were talking about on listing that you can double your money on the investment, how does the picture look now?

A: Other than being an intermediary, which has to participate, there is not much excitement on the cards because not many will get a major share of the oversubscribed numbers. When we are concerned about the valuations at Rs 450 with another Rs 450 premium, I don’t know everybody was talking about that we will sell it at the listing, but who will buy at Rs 900, while it gets listed at Rs 900.

So I think this was to be cooled off and in the days to come, one might see that suddenly the interest is lost and probably much lower rate is expected to open. I don’t see too much of excitement, 90% of people or probably more than that are applying in the IPO only because of the name Reliance attached to it and may be the kind of unprecedented bull run they are seeing. Other than that I don’t think anybody has a clue of why they are investing.

Q: As we speak, we are making a new intra-day low in today’s session at 19,691 for the Nifty itself 5,884, so the pressure continues downwards. What are the levels that you are watching out for closely that could probably provide some comfort to the market and would you be advising clients to buy at this point at all?

A: From now onwards, I’m a little bearish and for me the next couple of months inspite of being budget in place, I would play this market sell at every rise because I think it is overweight, the valuations are too stretched. I cannot predict any level not being a technical analyst, but markets may see another gap down opening tomorrow.