Mkts going through violent consolidation phase

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Mkts going through violent consolidation phase

The market is facing the global effect for sure because yesterday we had splendid pullback and this morning the mood was set back straight away after the kind of openings that we saw in most of Asian markets.

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The market is facing the global effect for sure because yesterday we had splendid pullback and this morning the mood was set back straight away after the kind of openings that we saw in most of Asian markets.That is part of the reason but generally the feeling that you are getting is that you can't make too much sense of what is happening in the market.

We are probably going through what is a very violent consolidation phase after a spectacular rally upto 14000. We went straight back to 12800, before people could say 12000 we were back to 13700 and then we have seen last couple of days that the markets has become extremely volatile.

I think this volatility will probably still stay because what has happened essentially over the last 7 days is that the one segment of the market which was completely out which is the bears or the bearish camp they have got a bit of a look in and they are not going to give it up so easily and when the markets cracked about 1200 points in three days the bears came back into play after a very long time because for six months they have been completely out of the market.

It has been just one way- you have either been long or wrong. But now that the bears are back you are seeing a two way kind of movement and a tussle happening around very important critical levels.

It happened a while back and around 3900 you are sensing that kind of tussle opening up once again for the Nifty where yesterday clearly the bulls managed to pull the Nifty above 3900 and the shorts were made to cover up and we saw the sharpness of the pullback in the last one hour of trade and today because of the global cues once again shorts are being pressed and bears have come back into play and which is why the market is seeing this huge amount of volatility 200-300 point swings intraday. This might well continue for a bit longer.

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