The Nifty has gained nearly 12% from the lows of the lower circuit earlier on Monday. However, this bounce is on a much smaller base and hence the markets are still 28% below its peak. Indian markets managed to add wealth to the tune of Rs.11.3 trillion in the last 3 trading days. The bounce was led by heavy short covering in banking stocks and that is raising a question mark if the rally can still sustain once the short covering is done and dusted. Otherwise it was hard to explain a 40% single day rally in stocks like IndusInd Bank and Bandhan Bank. The markets also got a boost as the finance minister launched a series of mitigating measures to ensure that the poor and vulnerable were taken care of in the lockdown. But for the rally to really sustain, the VIX will have to come down well below 20. At the current VIX levels of 70 , it is hard for any rally or bounce to sustain.