European confusion dampening market spirit, says Udayan

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It's been a good day for the market, but it's come off a bit probably because of the European confusion today, says CNBC-TV18's managing editor Udayan Mukherjee. Europe is a bit soft and therefore the Nifty has also come off the highs of the morning.

There are some rumours doing the rounds that Dhanlaxmi Bank's Amitabh Chaturvedi is likely to resign as managing director and chief executive. More on that will come after its board meeting at 4:30, but as of now the stock is down 3%.

But otherwise, it's been an okay day of trade. We started off well and almost went to 5,400 on the Nifty, but cooled down because the Greek resolution has not happened yet. Europe is on a back foot as well, down0.5%. Nothing alarming has happened there, but that probably has just pegged us back a bit. On the whole, the market still remains pretty strong particularly the broader market.

There is some tension both globally and in the domestic space because we haven't had a single proper correction, and we are approaching 5400. Europe is something that will be important in the next 24-48 hours; as long as we tide over the Greek hump, I think there is enough liquidity in the markets to take it higher.

But just for now, there is a little bit of nervousness so I guess traders would be wondering whether this is what will induce a correction in the Nifty after such a good run, even if it's an intermediate correction. Since the answer to that is unclear, I guess we will just amble around these levels for the day and by tomorrow morning maybe the European picture will be clearer.

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