Has correction mode set in?

New Delhi: Markets seem to be playing hide and seek nowadays. We wonder whether correction phase has set in and that how it will look three months down the line.

Experts, like Deven Choksey, KR Choksey, relieves us by saying that this is not a correction phase but a mere slide after a sharp rise.

"I don’t think there is a major correction at this point. This is probably because of the sharp rise we have," he said. Market would remain range bound and sideways for the next three months, he added.

Ambareesh Baliga, Karvy Stock Broking says, "As of now, the Sensex is decently close to its support levels and we have a cushion of another 300-400 points. If it goes below that then there could be a fresh set of panic coming in. Below 11,000 the intermediate trend would have changed."

Sumeet Rohra of Antique Stock Broking feels, "The market is likely to consolidate between 11,340 on the downside and 12,200 on the upside. The market is likely to settle in a range."

However, for this to happen, he adds, a clarification needs to come from the finance ministry about the CBDT draft proposal of taxing FII income by 40 per cent.

According to him the markets now would be floating in a channel between 11,340 and 12,200 and 11,344 should not be broken anyhow on a closing basis.

If that happens the market trend would turn negative and will set alarm bells ringing all around, Rohra warns.

Choksey giving some important levels on the market, said, "The market is having sharp rise and steep fall. The important levels that important 11,640 on the lower side and on the upper side 12,560."

Janish Shah, Networth Stock Broking, say, that markets will be more stock specific and will trade sideways after the initial donw fall is over.

"The correction will be there. For another week or so we will continue to see this kind of sharp volatility and after that there will be stability coming in," he said.

"Individual stocks and especially midcaps, will do better over the next 6 months. Correction was long overdue but it would be more of a sideways movement after the initial down fall," he added.