Expect Nifty to be rangebound this week: Udayan

Udayan Mukherjee, managing editor, CNBC-TV18 says, it looks like the Nifty is in for some more ranging trade following global markets. "It looks like we are in for a bit more grind as we try and negotiate that important resistance level of around 5,400" he adds.

Below is the edited transcript of his comments on CNBC-TV18.

It was a flat week that went by, barring the first couple of days. It looks like we are in for a bit more grind as we try and negotiate that important resistance level of around 5,400.

Global markets too have gone quite sideways in the last couple of days. This week, which is truncated in any case for us, let’s see if we can get some serious stock specific action going because it looks like the Nifty is in for some more ranging trade following global markets. We do have quite a few important results today stacked up during the course of the week.

Earlier, one could say that the market is rangebound, but individual stocks are doing very well. I think the disappointment of last week is that a lot of midcaps lost their way, a lot of non-index largecaps lost their way. So, the breath is not very comforting.

Despite the Nifty staying above 5,300, the market mood is a little bit more neutral, if it was positive 10 days back. That could change, if the market starts improving this week. But, for now, I think we are just about flat and consolidating here may be with a mild negative bias with the broader market.

I think the problem is that flows have ebbed off a little bit over the last couple of days. On Friday, the FII number was not great. And the domestic institution number was far bigger on the sell side. So, the market is sapped energy a little bit. That is why you can see momentum just flagging off because FII flows are not quite what they have been for the last 10 days and domestic institutions are more then off-setting that on the sell side.

I think they have a couple of technical issues out here. But otherwise you can still see that the market wants to stay in one place.

On the global markets:

They are also trying to make up their mind. You can sense that globally too markets have tired a little bit over the last few days. So, momentum has veined off a little bit, volumes have dropped off. I think global markets are trying to figure out, if the next move is up or the next move is down, after the nice rally that they have had.

The data points are not helping too much. They are also stuck in a range. But you can see that the euro has lost its zing a little bit. It moved up to 1.24, but has made very heavy weather around that level. It has now come back a little bit. You need the euro to go back to 1.25 for the market to regain its momentum.

Also, the other disappointment is that despite weak kind of data coming in from China, it is still not hurting crude as we would have expected sitting in India. The hope was that despite global liquidity, if Chinese data falters, it will drag down crude with it, atleast giving us some reason to feel a bit better right now.

But crude is stuck at USD 113-114 per barrel, which is not great news, despite weakening Chinese data. So, a few worry point, but essentially global markets are still on 'make up your mind' mode.