Some signs of buying at lower levels pretty encouraging

Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18.

The market is very volatile this afternoon. At one point, it looked like we are going down under once again and from there a small recovery has been struck out. We can see many peaks and troughs in today’s trade. The start was good, and then we fell off, recovered again only to slip alarmingly in the last half an hour, but then coming back closer to 3,600.

Trade is still extremely choppy. Two big waves up and down have played out in today’s trade and some of the largecap names have come under quite a bit of selling pressure. So, we are not out of the woods, but choppiness maybe after such a fall is not such a bad thing.

The only good thing is that it manages to claw back somewhat from the intraday falls that we have seen and that is not too bad. At least we are seeing some amount of resistance at lower levels because in the last couple of days we haven’t even seen that.

It is still distressing to see the breadth of the market and how things have panned out there, and the kind of stock-specific selling, which has come through. But we are seeing a little bit of support coming in at least around 3,550 kinds of levels. Maybe after such a one-way fall this volatility is indicative of the fact that some amount of base building is happening, though it is difficult to say with any kind of conviction.

So, it is all over the place now. You don’t even know whether the Nifty pulls back and closes above 3,600 or loses a lot more ground in the last one hour and goes back to 3,500 levels. I don’t think any big technical levels are at play now. I don’t think traders have any big levels in mind that are sacrosanct that they are playing with. So, it is a bit of a free for all going on there. But there are at least some signs of buying at lower levels, which is encouraging.

Source: MoneyControl