Double whammy on D-Street: Experts say bruise to bleed more

Moneycontrol Bureau

It's a double blow for the market as weak global cues and dismal index of industrial production IIP data knock the wind out of it. The Nifty managed to hold the 4900 mark amid sell-off, though it lost 112.65 points, to close at 4,948.80.
The Sensex too was beaten out of shape and closed with over 360 point cut at 16,501.74.
Experts are little worried that Europe still remains a very big concern as of now and Indian market is reacting to the negative cues coming in from there. Indian macro concerns too are not lesser. Going by the inflationary pressures, experts have already factored in a hike of 25 basis points.
However, Rajan Malik, Head equities, Private client group, MF Global feels that if there is a pause or any easing of the hawkish tone then the market react favorably to it. He warns that the market may see newer lows going forward. "Things could get much worse before they get any better," he reiterates. Should not miss: Is US the most liquid safe haven? StanChart says yes
Abhijit Paul, Technical Analyst, Brics Securities also agrees that the overall trend for long term perspective is still weak.
"It is very likely that that index is likely to inch further up which is definitely not very good news for the emerging markets per se. So from a very short term point of view I think our markets will oscillate within 4700 and cap by 5200 on the upside. But from a medium to long term perspective we are definitely drifting down. 4430-4450 is the range I am looking for," Paul explains.
Rajesh Kothari, Managing Director, AlfAccurate Advisors says it is important that from now on we should focus on little bit three months and beyond because market is going to be extremely volatile. Strategy ahead
Jagdish Malkani, Member of BSE & NSE suggests clients to hang in there as long as one has stocks.
Adds Malik, that the rule over here is get out whenever one is making 5-7%. "At 4700-4800 initially we did expect a bounce back to 5100-5200. Now given that kind of a move most of the stocks move 15-20%. So even if you did manage to make 10-15% that is probably what you wanted to make in a year from an alternative asset class. So you will get two to three such opportunities even if the market were to grind down ultimately," explains Malik. Nasrin Sultana
nasrin.sultana@network18online.com