SENSEX NIFTY
Jan 09, 2013, 01.51 PM IST | Source: CNBC-TV18

Global mtks quiet; Nifty continues to be rangebound

These are quiet days for the market. In the last few days, global markets have not been up too much, yesterday it was a quiet closing. Yesterday, we had a range bound session, but managed to claw back and close above 6,000 on the Nifty.

These are quiet days for the market. In the last few days, global markets have not been up too much, yesterday it was a quiet closing. Yesterday, we had a range bound session, but Nifty managed to claw back and close above 6,000. One will have to see if we are in for another couple of days of sideways movement before the market can find direction once again, said Udayan Mukherjee, managing editor, CNBC-TV18.

There is no momentum on the way down that’s much is visible. The Nifty has made a couple of attempts on the way down, but it is not holding there. I don’t think bears have a lot going for them at this point in time. The bulls will still hold onto their positions, but they would need to see some spark of momentum once again over the next few days.

So, I am hoping that the consolidation of the last few days will slowly begin to give market some kind of directional thrust by the end of this week. It would be strange if the markets spend five weeks on a range, break out for two days and then go back to a range for another two or three weeks that would be uncharacteristic behaviour. So far it has been quite rangebound, but maybe there is a trigger lurking somewhere, which will wake up the market once again.

So, I am hoping that the consolidation of the last few days will slowly begin to give market or give into some kind of directional thrust by the end of this week because it would be strange if the markets spend 5 weeks on a range, broke out for two days and then went back to a range for another 2 or 3 weeks that would be uncharacteristic behaviour. So far it has been quite rangebound, but maybe there is a trigger lurking somewhere, which will wake up the wake up the market once again.

DII outflows are surprisingly large these days, Rs 900-1,000 crore. So that is a little disconcerting. I do not think that changes too much because FIIs and DIIs are pretty much well balanced. Internally, the fast moving consumer goods (FMCG) and pharmaceuticals are coming back into play over the last couple of days. Yesterday pharmaceuticals did very well, ITC which has been in a bit of a corrective groove also seem to snap back a bit.

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