The Indian market is witnessing "spring action" now. That is the message from market veteran Atul Suri, who believes Dalal Street may be gearing up for consolidation. “Whenever the market crashes, this is nothing but a spring action that you see repeatedly,” Suri, CEO of Marathon Trends-PMS, said in an interview to CNBC-TV18.
After the spring action, which he believes is something the market is going through now, comes consolidation for some time. The important thing is to see is what happens and how long it goes on for, he added.
Giving the example of 2000, he said after the crash in IT, the market was up 120 percent in 2003-2004 in less than a year. Another crash in 2009 was followed by a 180 percent surge in the market, Suri said.
"The fact is: whenever the markets fall, the way they did in the COVID times, after that, you have spring action... and that is what we are experiencing,” he said.
“I personally think that going ahead, for the next few months, we could head into a consolidation," said the market veteran. For the Nifty50 index, he sees a range with a bottom around 16,500 and top towards 19,000, he mentioned.
It is very important for the market to consolidate. "They have done that in the past," he said.
“Consolidations don't mean that there are no opportunities; there are a lot of opportunities that happen,” he asserted.
For the entire interview, watch the accompanying video.