Market are likely to be Choppy in next Few Months

It has been an interesting week for the market. There is almost an air of nervous expectation as we run towards September 18 for the US Fed meet. The markets have turned a bit volatile, but they have not given up much ground. Most markets are moving towards their old highs. The Sensex and Nifty have not covered too much ground.

It has been more of a week of consolidation, about 1% apiece, both the Sensex and the Nifty on the way up. But even so, a bit of a step forward towards that old high of around 4,650 for the Nifty. Some volatility, some edginess on whether the Fed will deliver the cut or not. So, global markets are interestingly poised and we are taking those cues as well.

Markets were likely to be choppy over the next few months. Experts stated that credit market concerns were not over yet. Central banks were pausing in an up-cycle. He added that the US housing market issue had not been completely resolved.

There was not much clarity on the extent of the problem in the credit markets. High crude prices, domestic political situation were some of the other issues that needed to be dealt with, he said. The markets have become more volatile & unpredictable. He cautioned that one's approach should be prudent and watchful at this juncture.