Volatility spooked traders; see 48505150 range: KR Choksey

Volatility spooked traders; see 48505150 range: KR Choksey

Deven Choksey, managing director of KR Choksey Securities believes that the high volatility in the market has sent traders running for cover. Thanks to the volatility in the market, no trader is comfortable taking any position he said exclusively to CNBC-TV18. However, he adds that the day to day market scenario suggests a possible upside due to a short covering rally.

The Greece related issues and the currency misbehaviour could force some of the index funds to come into this market and probably offer a short covering led rally he said. He further adds that any possible trend will be welcome by traders, who will be the first ones to jump in. For now, Choksey believes that the Nifty could stay in the range of 4850-5150.

Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.

Q: We have seen quite a bit of selling both in the cash and futures market yesterday. How are things looking on the dealing side when you speak to traders?

A: It is not a pretty looking scenario. Thanks to the volatility in the market, no trader is comfortable taking any position. If one looks at the current day to day market scenario, it is once again suggesting that you could have short covering kind of upside happening into the market.

On the global side, the Greece related issues and the currency misbehaviour could force some of the index funds to come into this market and probably offer a short covering led rally. So one does not know which side of the market you would like to take your call and as a result traders are feeling a bit uncomfortable.

However, I do agree that if some trend emerges, they would be the first ones to jump into the market, particularly taking a call on the longer side. But as of now, I believe that the Nifty could possibly stay in the range between 4850-5150 levels.