Nifty will consolidate, advise long positions: Harendra Kumar

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital shares his view on the market.

ET Now: In a jiffy, Nifty is down more than 200 points and we have lost nearly 2.5% for the week gone by. Do you think in the short term, the party is over?

Harendra Kumar: I will not say the party is over. It would be a period of consolidation. We have had a sharp bounce from 5200. It needs to consolidate before the next move up, the liquidity rally takes it to the next level. So it will consolidate probably for the next couple of weeks.

ET Now: Do you worry about the flow picture because of late, FII selling has reduced, DII selling has only intensified and now foreigners are also creating short positions in Nifty futures?

Harendra Kumar: That could be momentary but if you look at what is coming out of China, Japan and some of the other emerging markets, and when you look at where crude is positioned, you could see a good amount of rally in the emerging markets if it weakens any further. So my guess is that the momentum is strong and it is a trading market. So it is better to be on the longer side than on the shorter side.