The Hindu Business Line : High volatility likely in D-Street

MUMBAI: With no new trigger expected on the domestic front, Dalal Street is likely to remain choppy, as investors will continue to offload stocks at higher levels, say analysts.

“The market is facing resistance at higher levels. There is a high degree of volatility in the market which shows that investors are nervous about trading,” Kejriwal Research and Investment Services head Arun Kejriwal said.

Analysts believe the market would trade in the range of 4,960—5,200 during the week and try to consolidate at those levels as there is no clear direction about the movement of the US dollar against the rupee.

“Traders should be cautious at this level. The US dollar is moving up and the crude is falling. If this kind of a movement continues for long it can bring in some kind of a breakdown at the lower side,” says SMC Global vice-president Rajesh Jain.

According to Geojit BNP Paribas Financial Services Research head Alex Mathew, “we are advising our clients to stay away from the market now, as any kind of buying or selling would leave you as a loser in this volatile market.”

Kejriwal adds, “the market is facing resistance at the higher levels, as every time the market tries to move up it faces a selling pressure. The market is trying to find a level for itself and with no new triggers expected in 2009 it would look at global markets for direction.” - PTI

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