Short-term outlook: See Nifty in a 100-150 points range

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Udayan Mukherjee, Managing Editor, CNBC-TV18, says there is a bit of confusion in markets and advises traders to avoid taking very large bets. "We are still in a 100-150 points range on the Nifty and within that we may toss around, but too much headway on the way up or down looks a little unlikely." He expects the market to be stuck for a few days in that trading zone of 4,700-4,850.

Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also see the accompanying video.

Market cues

We had a turbulent session of trade yesterday but ended flat. This morning again mixed cues. The US market had a bad night overnight. The Dow closed below 10,000 but Asia has not picked up that weakness to the fullest extent. A bit of a mixed picture globally speaking. So let's see what we make of it and whether we continue to be volatile in a trading range or we can make a more substantial move today.

On choppy markets

One saw a 120 point intraday swing and that's a large swing by any stretch and if you were tempted to go short below 4,700 because the market was exhibiting a breakdown kind of momentum - you would have caught out on the way down. If you went long thinking that the Nifty was soaring above 4800 - that too didn't hold in the last hour so that trade would have got knocked out as well, so yes its volatile but at the end of the day it was flat. And as we were discussing yesterday, you might spend a few more days with the Nifty not doing too much -just spending time in a bit of a range.

Even global cues are somewhat mixed - the Dow Stabilized on Friday but slipped below 10,000 and closed there yesterday but commodity markets have been showing strength for the last couple of days. There is a little confusion out there, best not to take very large trading bets and to see, which side we come out and I think we are still in a 100-150 point kind of range on the Nifty. Within that we may toss around but too much headway on the way up or down looks a little unlikely.

On rangebound markets

It is possible but it's difficult to call for the day but we saw another Rs 900-1000 crore of selling from the FIIs. So that is relentless and that caps of any kind of significant upmove. Even yesterday you saw move up to 4,800 and then suddenly the supply materialiased and we came back all the way to 4,750. So it's not an easy journey on the way up. But the market is range bound because conviction is lacking on any trade substantially below the 200 DMA , I don't think people are convinced about that trade just now and conviction is certainly lacking anywhere above 4,900 on the Nifty unless there is a major leg up.

Within that there are pulls and pressures. People hammered the Nifty down to sub 4,700 then covering happened, some buying and the moment you get to 4,800 plus levels the fatigue starts creeping in. So, you are strapped in a bit of range and as we keep saying its blind leading the blind, so something will have to lead us out of this kind of range and it can only global markets at this point in time. But for the moment you could see intra day volatility because there are two views in the market.

But essentially, it might still be stuck for a few days in that trading zone of broadly 4,700-4,850 kind of levels.