Limited downside? Nifty unlikely to touch 22,000: Geojit’s Anand James

Nifty's downside may not extend all the way to 22,000, says Anand James, Chief Market Strategist, Geojit Financial Services. «We feel that an upswing attempt could unfold, once in the 22,550-22,300 region.»

Edited excerpts from a chat:

Nifty bears dashed hopes of a rebound in the week. How strong are the chances of the index falling below 22,000 in the next 2-3 weeks?

A solid recovery from sub 22,800 levels last Monday masked the selling that unfolded through the rest of the week on every attempt to rise. We had gone in last week with the feeling that a large break down was imminent, but this was dodged through the week, despite multiple forays into the 22,800 vicinity. We feel that this has only served to delay the inevitable. However, given the flattish range last week, the downside break may not extend all the way to 22,000. We feel that an upswing attempt could unfold, once in the 22,550-22,300 region.

Given the fact that the market has been on a negative trend for the last five months, do you think selling on rise is the best strategy for traders as buying the dip hasn't been clearly working?

We have seen green shoots here and there, but there has been little evidence to suggest that this is broad based, or that a sustainable upswing is in the making. Unless such signs are visible, we feel that there is still room for more time and price correction, before strength is visible.

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