Nifty 2700 an important psychological level !!!!

The Nifty trading well below 2,700 mark, which has become a very important psychological level these last couple of days.

Here is a verbatim transcript of Udayan Mukherjees comments on CNBC-TV18. 
Tough day for the market; it was down in the morning then it raised hopes in the middle of the day a couple of times that the bounce back was on the offing but every time the weakness has come back to engulf stock prices. So we are below 9,000 once again this afternoon as we last lap of trade and the Nifty disturbingly trading well below 2,700 mark, which has become a very important psychological level these last couple of days.

Still one hour to claw back but the way some important clusters in the market like banking, technology, power and metals have collapsed today and of course taking the breadth with it is not been very good at all. The market will need to pullback in the last hour of trade like yesterday to salvage something but so far not looking particularly good.

Yesterday we managed to claw back but today the claw backs have got sold into and that is very discomforting. We have seen a couple of attempts where the market seemed to have decisively bounced back from sub 2700 and went back to around 2,750 and then slipped once again. So its happened couple of times which makes you a bit nervous about whether this level will hold out today. .

Its a tough going and its also important to understand that while we keep talking about the retest of the lows, if one looks at the closing lows of October that is about 2,500 plus Nifty and 8,500 Sensex on October 27, so we are barely 5% away from our closing low for October whatever the intraday gyration may have been spiked down on the way South.

This is dangerously close to a break down. I hope we create a little bit of cushion above 2,700 by the time the day is out because who knows what we come back with tomorrow morning to trade. In any case we are very close to the S&P October lows. So the next 24-48 hours assume a lot of importance but I think todays closing could be quite significant too.