Moneycontrol Bureau
It was a lacklustre session of trade, with the markets failing to hold on to yesterday's gains. Sluggish global cues too, dampened sentiments.
The Nifty gave away yesterday's gains to close below the 4900 resistance at 4888, down 60 points. The Sensex too was a picture of red closing at 16,284 down 213.
Even as the markets may have dipped again today, there are mixed views about its future course. While experts do admit that the sentiment at large is a negative one, a strong rally is very much possible.
"The positioning is very poor in the sense that most people now are negative on markets in India, internationally. and so you know some of those sentiment indicators are increasingly showing that there could be a rally in markets rather than a dip simply because things are so negative," points out Jyotivardhan Jaipuria of BofA Merrill Lynch.
Likewise, Louise Yamada, MD, Louise Yamada Tech Research feels the Nifty could see a rally with the first resistance around 5200. "You could get a rally in the Sensex and first resistance could be around 17500," she added.
It's actually a short-term buying opportunity rather than a selling opportunity, said Jaipuria. "You know it works 60-70% of the time but it didn't really work during the Lehman crisis. So what we are building is: if we don't get that sort of crisis globally, then maybe positioning-wise or sentiment-wise things could actually have one bounceback at least. Otherwise, I think its going to be a tough market,
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