We may see darker periods in market; it depends on how global story plays out: Udayan

In an interview with CNBC-TV18, Udayan Mukherjee shared his views and outlook on the market.

I think the market is trying to consolidate right now. We have had a fairly significant fall, the biggest of the last 12-14 months on the way down from 11,200 to about 10,300 levels, he said.

We could try and work within a range of maybe 10,300 as the base, 10,700-10,800 as the top end of the range and see if we can consolidate for a few weeks after the first big draw-down because markets never fall in a single line, they will give you bounce back and consolidation phases, he added.

I am not terribly comfortable or confident that 10,300 is the final bottom for the year. We may see darker periods coming but that depends also on how the global story plays out, said Mukherjee.

For the moment, there are some headwinds which is causing the foreign institutional investors (FIIs) to get quite uncomfortable, they have been selling through the month of February and that might continue going forward. So India is underperforming in a sense and that is something which FIIs are very cognisant about but the domestic institutional investors (DIIs) money still hasn’t dried up completely so we are probably stuck in a bit of a range now. Let us see if we are in a midst of a pullback, how strong that pullback is and then we can decide whether this range will hold for the moment, he further mentioned.