This is early 2009 kind of scenario: Rajat Bose

Rajat Bose, rajatkbose.com, gives his views to ET Now on the market outlook.

What is the call on markets right now?

During the day you can step lower. What I see is that 5090 to about 5060 would be a strong support zone and from here, fresh buying can once again come in but I am not unduly perturbed by this fall because we came very close to the major resistance zone between say 5150 and 5185.

We opened into the zone and then the sell off has happened but what is more interesting is that both the US market volatility index and the NSE India VIX that is our volatility index, both have come down below 30, our volatility index is close to 26 and most of the indices all over the world, either they are close to their medium term moving averages or their 200-day moving averages and they are showing positive divergence of oscillator charts barring the Sri Lankan index.

So given this kind of a scenario, this is the kind of scenario that I have seen just prior to 2009 and 2003. In 2009 prior to March and in 2003 prior to April, this kind of a scenario was seen that all markets together were showing signs of a rebound.

Probably this is the last bit of downswing that is going on and I continue to believe that we are only at the tail end of the bear market and with the volatility continuing to be there, there can be some scepticism but at lower levels buying is likely.