Mkt tank; is 5500-5600 possible in near term?

There seems to be just one apt word describing the market’s shape—ranged. On Thursday too the bourses remained stuck in a range for a large part of the trading session before sliding in the last hour. The NSE Nifty slipped a tad below 5,450 losing 20.75 points, closing at 5,447.10. The BSE Sensex closed at 18,172.83 after falling 44.61 points.

So will equity indices break out of this range any time soon or is the trend here to stay? Amit Dalal, Executive Director, Tata Investment Corporation Ltd believes that there is a strong possibility of Nifty clocking 5,500 and then 5,600 since it is backed considerably by the global sentiment in the equities on the western hemisphere. “Given that we don’t have anything which is negatively poised, there is a possibility that liquidity will move the market up.”

Ambreesh Baliga of Karvy Stock Broking too feels the Nifty is headed higher in the coming days. He expects it to move towards 5,550-5,600 in the next two to three weeks.

However Vibhav Kapoor of IL&FS is of the opinion that the market can remain range-bound. "The range is expanding anywhere between 5,400 to 5,550 levels."

The indices are not going anywhere, says, Jagdish Malkani, Member of the NSE. “The undertone is still very robust—the inflows are fast and furious. In the large cap space, what you loose on the swings you make on the roundabouts, sector rotation etc. But there is a lot of action seen in the midcap space.”

Though Thursday witnessed sideways movement, Technical Analyst Ashwani Gujral, still feels 5,550 should come in. “That would be a significant level because a couple of times in 2008, the market stopped at 5,550.”

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Tags: BSE, Bull, NSE

Category: Stock-News