Nifty sees some support at 3850-3900

CNBC-TV18’s Managing Editor, Udayan Mukherjee : : It has not been a bad day for the market, yes it has been volatile, at points it has looked like giving up all those gains but we have survived that inflation scare at least for the moment. The Nifty is now almost at the perch of 4,000 once again. The Sensex too is consolidated well in today’s trade, generally holding on to a positive bias and today does not look like such a big short covering relief pullback as it looked two days back. Today this seems to be a bit more resolved about the move. There is buying in real estate, in infrastructure, in banking of course metals have been a bit weak but all in all it has not turned out to be a bad day for the market of course fingers crossed last one hour of the week can always be tricky.

It’s good day because two days back I was saying it just looked like such an empty relief rally driven by nothing other than short coverings. But today it almost seems like it’s a little bit more deliberate, there is a little bit more by the way of buying support, its not build up with a big gap up in the morning, its been slowly accumulating up just through the trading day, has taken an intra day dip and then managed to bounce back. So I am not suggesting we are out of the woods but all that one is seen for the last 2-3 sessions seems to indicate that the market is at least trying to put in some support at around 3850 or 3900 levels, we don’t know whether it will hold but for the moment at least an attempt is made, some of the beaten down sectors are seeing some value accumulation and it seems people are talking about seeking value in many of the beaten down sectors like capital goods.
 
So I think it looks a bit more constructive than what has been the case for the last few days. Now whether it has it in to take it up another 5-10% on the Nifty, time well tell but for the moment I think you would have to say that the day hasn’t been bad.