It is not a nice picture: Ashu Madan, Religare Securities

In a chat with ET Now, Ashu Madan, COO, Religare Securities, shares his views on the present market outlook.

Five days on the trot now, Indian markets they have slipped and in quick time Nifty has corrected from 5200 to about 4950. What’s next?

Very scary sign, the reason being for the first time post this RBI policy that at least there would be some stoppage to the high interest rate regime and some problem solving happening at the global front. There were signs of reversal. There were signs of that we are in for a higher top, higher bottom kind of a formation and 5100 was honestly looking like a very strong support but the way with such ease given today the 5000 is broken, the gates are open again on the downside. Currently normally in the previous occasions whenever we have breached 5000 in the recent past, there was an extreme sense of pessimism.

There were its visible short positions in the market. People used to tend to go short but currently what has happened in such a short span of time, nobody could react to the situations, so there are not much short positions in the system also, which would tend some strong reversal backed by some strong global news, so everything put together, it is not looking really a nice picture, so any smaller bounce backs have to be sold off in the current situation. The quick money is still on the short side than to be on the long or cherry picking in spite of this correction.