Udayan’s View: Morning round may go to bears
Udayan’s View: Morning round may go to bears
US markets have sold off today and Asian markets have been subdued.

US markets have sold off today and Asian markets have been subdued. In the past, despite touching the psychological levels of 20K and 6K, the markets have not been able to close above them.

Today's a test for the markets. We have come out of a big period of news flows. But we'll have to deal with bad news from the US.

The morning round may go to the bears, but the second round later, is crucial.

The last trading day of what’s been a volatile week for the market; generally consolidating but with large intra-day swings and that’s pretty much what one saw yesterday and the way global markets have shaped up today, we will probably brace ourselves for some more volatility today.

The month of October has come to an end; November has started with some amount of volatility under the belt and today the US markets have sold off, Asian markets are a bit subdued.

So let’s see whether the corrective kind of consolidation that we have seen over the last couple of days intensifies today and what we make of all of that.

I think it will be an interesting session but the important thing is whether we can pullback, even if there is a weak opening this morning.

Does market look rough around the edges?

It does because we have been looking quite volatile in any case for the last few days and markets have not been able to go above 20,000 mark and 6,000 mark on the Nifty convincingly and trade above that.

We haven’t had meaningful closings above those psychologically important levels.

You saw what happened yesterday - we stated strong and then we drifted down and ended in the red. So today is the test for the market.

Last few times we haven’t made a huge deal of the weakness in the US the markets pretty much shrugged it off.

All Asian markets including India just moved on but now we have come out of a big period of news flow and become a bit volatile in any case and have hit a couple of interesting targets; psychologically important targets and now we have got to deal with some amount of bad news from the US.

So we should start to peak; the key point is what kind of note we close the week with.

If the market manages to pull back from the losses of the morning and close flattish that is fine and there is no problem.

Then I think both the bulls and the bears stay in the game. Right now the tussle going on - the morning round may go to the bears and the second half of the day could be quite crucial. So expect some volatility today again.

Asian Indices

Rough day in the US - big fall there. Asia is down but not quite out, you would have to say.

You have seen this before - 1.5% down on an average across the board. Hang Seng tends to be more reactive to what is going on in the US. So that market is down 2.2%.

The other markets are down about 1.5% apiece. So that is pretty much the damage, which has happened across Asia.

What's your reaction?

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