Markets heading for some sort of bottom formation: Nitin Rakesh
There will definitely be a downward bias given that we have had a spate of negative news coming out, so one has to be careful about not making too much out of the sharp moves up.
By 
| Updated:
| Updated: In a chat with ET Now, Nitin Rakesh, CEO, Motilal Oswal Asset Management Company, talks about the markets today.
What do you make of the bounce back today in line with what happened in the US yesterday but the point being? Do you fear all rallies being sold into or do you believe that for the near term, we might actually just about be in a tight narrow range with maybe a slight bit of a downward bias?
Nitin Rakesh: It is very hard to call what happens in the really short term because in this heightened environment of volatility, markets are kind of moving on every bit of news, every cue that they are getting on the upside and the downside, so in the very short run, one would have to kind of wait this period of volatility out. There will definitely be a downward bias given that we have had a spate of negative news coming out, so one has to be careful about not making too much out of the sharp moves up. So clearly where we are headed right now is some sort of a bottom formation has to happen and that’s going to take time. It is not going to be a swift V-shaped recovery either because the damage has been fairly severe globally.
What do you make of the bounce back today in line with what happened in the US yesterday but the point being? Do you fear all rallies being sold into or do you believe that for the near term, we might actually just about be in a tight narrow range with maybe a slight bit of a downward bias?
Nitin Rakesh: It is very hard to call what happens in the really short term because in this heightened environment of volatility, markets are kind of moving on every bit of news, every cue that they are getting on the upside and the downside, so in the very short run, one would have to kind of wait this period of volatility out. There will definitely be a downward bias given that we have had a spate of negative news coming out, so one has to be careful about not making too much out of the sharp moves up. So clearly where we are headed right now is some sort of a bottom formation has to happen and that’s going to take time. It is not going to be a swift V-shaped recovery either because the damage has been fairly severe globally.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
US stocks: SpaceX shares close 19% higher in historic market debut, value surges past $2 trillionADVERTISEMENT
