InvestorQ : What explains the sharp bounce in the Sensex from lower levels on Tuesday 15 December?
Niti Shenoi made post

What explains the sharp bounce in the Sensex from lower levels on Tuesday 15 December?

Answer
image
ishika Banerjee answered.
1 month ago
Follow

On Tuesday 14 December, the markets showed an amazing bounce from lower levels. After staying in negative territory for better part of the day, the indices almost closed flat. In the process the Sensex bounced back nearly 430 points from lower levels.

This was indicative of the inherent strength in the markets. In fact, there was aggressive buying in select financials and in IT stocks. The Sensex ended the day at 46,263; up 10 points. The Nifty also ended flat.

The stocks that bounced sharply from lower levels on 14 December included HDFC Twins, Bajaj Finance, Bajaj Finserv and HCL Tech. The bounce was clearly favouring the banking and financial stocks on the one hand and IT on the other, even as FMCG remained under pressure.

The recovery was also supported by the Volatility index or VIX that ended marginally lower at 19.3 levels, hinting at limited downsides. VIX has stayed below the 20 mark for quite some time now giving the classic signal of a buy-on-dips market.

1 Views