Don't see major moves in mkts today

Udayan Mukherjee, Managing Editor, CNBC-TV18, sees market consolidating today after yesterday's profit taking. "The markets usually consolidates before a festive occasion."

Starting Tuesday, he says, there may be a big move for the market depending on earnings and global cues. But was quick to add that he does not see any major moves today and tomorrow.

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

Q: How would markets fair today?

A: It is the one day before the big festive occasion. Things are quiet and stable, so no problems at all with the market today. The Dow kept its head above 10,000, Asian markets are quiet and sideways. No big results barring Tata Consultancy Services (TCS) today, so one need not work into a tizzy about earnings season. We can go in gently into Diwali and take it from there as we come back after three long sessions of a break. It looks like a stable and quiet market that we are heading into this morning atleast.

Q: But it is Friday.

A: Yes, it is a Friday but I think we should be okay. We may consolidate some more because yesterday (October 15) we did exactly that, we saw a little bit of profit taking, no great cut in the market, some sectors went down, some sectors went up. So, I think sometime when you get closed to a festive occasion, you take a couple of days off and consolidate. I think a lot of people would be traveling this week as well. We will just quietly go into the season and then come back on Tuesday and then see, if the global trend is intact. Lots of earnings stacked up over the next couple of weeks. So, I think starting Tuesday is the big move for the market depending on earnings and global cues. I suspect that today and tomorrow's Muhurat session might not lend any major move to the market, it doesn't appear that way.

Q: What about the market?

A: Yesterday, it was reluctant to go too much below the 5100 mark, so we may just hang around here. The problem with the Nifty over the last few days or in its journey beyond 5100 is that about 20% of the Nifty is just not moving. If you take IT because of the rupee, you take telecom and you add FMCG, which is not moving now as it does not, when the market shows some kind of momentum. It does better when the market is falling so that 20-22% of the index is dragging the market a little bit. So, you are seeing performers like the odd metal stock, the odd power stock, the odd auto stock and Reliance is sort of running to stand still, ONGC is not doing a whole lot. So, in that kind of environment where a couple of heavy weights are standing still. A fifth of the index is dragging and a few stocks are performing.

I think it is a bit of a question mark on what will drive that big momentum burst that we are all taking about to 5300-5400. I think that question will need to get answered over the next couple of weeks, if indeed the Nifty has to move forward another 200-300 points. We may actually just tread water around this 5100 mark for a couple of days.

Q: The money has been unrelenting; the largest has been for everyone in Asia?

A: It is - Rs 750 crore again. Something opened up once again. Sameer was saying that it is probably getting to that buying panic and he was saying something interesting that it probably, has a lot to do with year end performance. So far you could say that I will buy a dip but you are coming closer and closer to the end of the year. So, I think you are coming to the point, at one point you will have to buy the bullet and put the money in and catch the tail end of the market performance during the year end. So maybe that leads to the kind of money flows that we are seeing over the last few days and the tap has opened up once again for the last quarter.

In any case we all have been talking about the possibility of a global correction and the S&P has quietly moved to 1100. The Dow is trading above 10,000 that is no corrections so people are probably getting a bit tired of waiting out for that 10% fall and now they are probably telling themselves that 10% fall from what I could wait for the market to go up 10% and then it will correct 10% from there so at best I will be buying where I am today but I am not buying today.

So with the passage of time and markets moving higher and higher I think the money is getting even more frustrated and therefore coming in.