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May 05, 2010, 10.50 PM IST
Portraying a remarkable comeback after a disastrous start, the indices tracked their global peers and clawed back to close well off the day’s lows. But is this pullback just a teaser or is an upmove really on the cards? Experts discuss.
But is this pullback just a teaser or is an upmove really on the cards? Deven Choksey of KR Choksey Securities says this trend will continue wherein if there are sharp cuts then one will have equally good bounce backs. “If there is fresh buying, we should be seeing a further upside coming into the markets,” he says.
The markets, Choksey says will continue to be range bound. Further, he goes on to say, “If the Nifty takes support somewhere around the 5,000 levels then probably from that stage onwards, we should be seeing a bounce back. The Nifty will hover in the 5,000-5,300 range as of now.”
Vijay Bhambwani of bsplindia.com believes the visible rally from 5,050 levels is a Fibonacci pull back. “I would not really bet on the Nifty going past 5,210-5,220. At those levels you will see some amount of fresh shorts coming into the system. As far the shorts are concerned, we have seen a pretty alarming situation here. The markets even though have fallen in the last couple of trading sessions, the Nifty put call ratio is not really coming down which means that shorts are comfortable actually rolling over there position to the next day which basically tells you that 5,050 may not actually be the be-all and end-all of a support in case of a downside. The markets may even head to its 200 days simple moving average.”
Market still running with short book?
An unsure Choksey says, “People are nervous. Also, long positions have been offloaded in the market. I am not sure whether people have shorted afresh in this particular market. But the reading says if technical levels break then some people do go short into the market and at such a point, when they see some amount of recovery happening, the squeeze too starts happening.”
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