Mkt fall not correction, steam left for rally: Experts

The markets dipped on Tuesday after rallying for three consecutive days. The Nifty closed at 5857.55, down 41.30 points, and the Sensex at 19,463.82, down 113.57 points.

Experts, however, say that this is not a sign that the uptrend is over, or that the market is encountering resistance. Tuesday’s trading session is just a pause after a continuous uptrend, partially because of profit booking. Their short-term outlook remains positive. “It is a normal consolidation after a big upmove. The positive bias for the short-term remains,” says Sudarshan Sukhani of s2analytics.com . But if this consolidation does not continue in the next few days, then things will certainly change, he says. People who felt that the market is sluggish today and will not have a 4-6 percent upmove squared off their positions, resulting in the fall in indices. But the uptrend could be revived this week, say experts.  SP Tulsian of sptulsian.com says, “When traders get tired or they don’t see much upside moving on, then profit booking comes in. So, I don’t think that the trend has broken. I am having the positive stance with resistance at 6,000. So maybe in the remaining three days of this week probably we will be seeing two positive days and that should be the likely trend.” The positive outlook for the market has been further strengthened by decisions made by the government, which is the hike diesel price.  Amisha Vora, joint managing director, Prabhudas Lilladher says, “In the last couple of days, very positive decisions which were lingering for a very long time got cleared. I think in the medium term it will have extremely positive impact on the economy and growth.” One dampener is the roadblocks that have come in for the Jet-Etihad deal. Tulsian says it is unfortunate that the PMO has referred the same note back to the ministery after it was approved. "These kinds of things throws questions on the credibility of the move the ministry.” But he feels it is likely to get cleared in a couple of months.