Inherent mkt weakness, distribution taking place: IL&FS
Published on Thu, Dec 21, 2006 at 09:42 | Source : Moneycontrol.com
Updated at Thu, Dec 21, 2006 at 18:03
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Inherent mkt weakness, distribution taking place: IL&FS
Vibhav Kapoor of IL&FS says that there is inherent weakness in the markets and that valuations are stretched. He states that distribution, not consolidation, is taking place in the markets right now.
Vibhav Kapoor of IL&FS says that there is inherent weakness in the markets and that valuations are stretched. He states that distribution, not consolidation, is taking place in the markets right now.
Kapoor states, " We have been having reasonably bearish view for a few weeks now. The fact that there is so much of volatility itself I think is a negative because normally you see so much of volatility only at the tops of the intermediate trends rather than at the bottoms."
He doesn't expect the markets to go too much higher from these levels for the time being, and believes that the Sensex will settle in the range of 11500-12000 for the next few months.
"I do not see the market moving up from here immediately. Sooner or later you are going to see an intermediate downtrend weakening or probably it has already begun," opines Kapoor.
Kapoor states, " We have been having reasonably bearish view for a few weeks now. The fact that there is so much of volatility itself I think is a negative because normally you see so much of volatility only at the tops of the intermediate trends rather than at the bottoms." 
