Indian shares opened higher but fell shortly after in Monday morning trades as concerns over US-China trade war and rising crude oil prices weighed on the investors' sentiment.
According to CNBC-TV18 Consulting Editor Udayan Mukherjee, we might see pullback rallies but it would be unwise to say that markets have bottomed out.
"It is conceivable that the market tries to form a bit of a range for a while; 10,200 might hold as a base for the moment but I am not brave enough to say that we have made a final bottom and market is about to rally from here on significantly," Mukherjee told CNBC-TV18 on Monday.
“We might have pullback rallies. I am calling this a bear market; bear markets have strong rallies, we could get up to 10,700-10,800 kind of levels if global markets are supportive,” he added.
Mukherjee is of the view that the macros are still tricky, sentiments are poor, global market tidings are not great and liquidity is very tight and all of this makes the journey for equities quite tough over the next few months.
Talking about the bond markets, Mukherjee said, “The 1,600 point fall in the Indian Nifty has very little to do with US bond yield going up; there were other factors like crude, local macro, there is politics, there are so many negative tidings at this point in time.”
“In my book the best case scenario for the market over the next few months is to try and work with some kind of a range of consolidation and hope that we can bounce back in a few months from now,” Mukherjee added.
(Source: CNBC TV 18)
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