Nifty to plunge another 100 points before stabilising: Jagdish Malkani

In a chat with ET Now, Jagdish Malkani, Member NSE & BSE shares his outlook on Nifty. Excerpts:

ET Now: The way the index has just been falling day after day, we are breaching quite a few psychological levels on the downside, how much further do you see us go?

Jagdish Malkani: I see another 100 Nifty points or so and then we should stabilise. This is because of the hope that the election will bring in a stable government.

I still think the strong sectors like IT and pharma, barring FMCG, will at some level again become very attractive and will certainly bounce back.

ET Now: How much much downside do you envisage this current nervousness could take the Nifty to?

Jagdish Malkani: I would be surprised if it breaks 5900. Some say this is the beginning of market meltdown but I do not think so; India will be a more robust story and at some level it could recover.