Expect market to bounce back again: Jagdish Malkani, NSE

In an interview with ET Now, Jagdish Malkani, Member, NSE, shares his views on the market. Excerpts:

ET Now: A lot of this has got to do with what is happening globally as well. Do you think the pain has just started and we could actually go lower from these levels?

Jagdish Malkani: Of course anything could happen. These are crazy times. The Nikkei has confounded everybody in the last six months with the rise from 9000 to close to 16000 and clearly it needed a small trigger for the best hedge fund trade for a while. So yes, you could have that, but I would still tend to think that ours is more inspired by the Japan carnage and I do not suspect the FII sentiment would turn on a dime, but I would still stick my neck out and say it will bounce back once the market stabilises.

ET Now: Do you think this downward trickle could take us below maybe around 5800-5750 or thereabouts?

Jagdish Malkani: Of course it could. These are half of the Black Swan event happening as we speak. My own sense is that the carnage is not here to stay and you will have a strong bounce back. So that is all I would want to say at this stage.

ET Now: What would that be contingent on?

Jagdish Malkani: Until I see FII flows reversing for five or six or seven sessions at a stretch, I do not think this would happen frankly. Japan has been a very localised play based on what is happening there with the Abe-nomics etc. So as long as we have the world markets booming, the Dow, the S&P across the board, I suspect this liquidity play will again take us right back.