Vijay Bhambwani, bsplindia.com, feels that markets might see a new low soon, before the FOMC Meet in the US. “The second phase of a decline which we are in now, can be very sharp. You just need a little bit of a nudge for the market to come down or up because the volumes are poor,” he told CNBC-TV18.

Excerpt from CNBC-TV18’s exclusive interview with Vijay Bhambwani:

Q: How long before we may actually see that January low of 4,449?

A: I am going by the assumption that this is the second phase of the decline; what you saw as a linear sideways move between January 22-February 7 or 8 was actually a consolidation. The second phase of a decline which we are in now, can be very sharp. You just need a little bit of a nudge for the market to come down or up because the volumes are poor. My guess is you should see a new low; if at all a new low is coming very sharply before March 18 before the FOMC Meet. As per time cycle analysis, you would see a bottoming out either by middle of April, failing which you could see a long drawn affair of end of August.     

Disclosures:

I do not have any personal holdings in the stocks discussed today.