In an interview with Latha Venkatesh and Anuj Singhal of CNBC-TV18, Deven Choksey of KR Choksey Securities gave his readings and outlook about the market.
Below is the verbatim transcript of his interview with Latha Venkatesh and Anuj Singhal of CNBC-TV18. Also watch the accompanying video. Q: What is happening, all of a sudden we have seen intraday dip, in fact now 152 down on the Sensex, and it has become quite volatile? A: Yes, by and large what we are seeing is action happening through kind of pass through orders and basically happening from the FII side or the institution side. Where in they are basically sending the orders to the computer based system and that is why you cannot figure out why this volatility has increased so much. But my reading says that largely the transactions are getting on the option side more than on the cash market or on the futures side. So, probably, we are seeing some amount of buying coming up at the lower levels and at the same time once again, distort with some selling of out of the money call options at higher levels, Which is suggesting that we are staying in the range of 5,750 at the downside and probably on the upside 5,830-5,840 kind of levels. Q: What explains that very brave gap up opening we had and strong trading for the first hour or so and then the sudden capitulation. Also in the past couple of weeks we have not seen very good FII flows; in fact we have seen even outflows. So is there certain hollowness to the rise in prices and that we might see upper levels getting sold into rather violently? A: You could say so, that in the upper level the buying is not emerging and if buying has to emerge at upper level then some of the heavy weights should participate into the market. In the morning expectation was that the banking counters would probably start participating into the market and take the market on a little higher side. But, that is not been seen as much happening currently. In my view point the momentum can return only when the FII guys probably start confident buying in aggressive manner which is not happening at the higher level. So, that is explaining that at lower level they probably start buying in once again and direct market access route which I was referring earlier, is the ultimate way of working. So, you are not in a position to figure out as to who placed the order and how much quantity is going through. We are basically getting the orders coming in directly and you see the impact on the market accordingly. Q: TCS is down 3% while it has been out performing Infosys by quite a margin, is todayDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
