Markets are expected to end choppy session of trade in the green led by gains in Banking and PSU shares.
After two days of pull back rally, Nifty opened in the red at 5,468 on back of lacklustre cues from Asia. After swinging between 5492 and 5408, the S&P CNX Nifty surged 50 points, at 5505 supported by rally in Banking stocks. The Sensex was up 149 points, at 18,349.
Analysts expect a further 10% dip from these levels if situation do not improve at the macro level. Nilesh Shah, MD & CEO, Envision Capital Services said, "we think the markets have been oversold in the short-term. In the near-term, we could witness a bottoming out at these levels. However, if macro-economic issues continue to simmer, a further 10%. downside can’t be ruled out from 17,000-levels, which seems a good bottom."
On other hand Mahesh Patil, Head Equity (Domestic Assets), Birla Sun Life Mutual Fund said, "would not say we are in bear grip. Certain levels need to be broken – like 15,500 on Sensex – to say with conviction that we are in a bear grip." While markets have risen 4% in past two days, domestic investors have not made a dramatic come back after the correction. Patil said, "domestic investors are coming back, but very slowly as still there is fear as things have happened very swiftly in the past."
Among other Asian markets, Hong Kong's Hang Seng fell 1%, Japan's Nikkei rose 0.2% while China's Shanghai Composite closed flat, up 0.01%.