InvestorQ : What is your outlook for the weekend trade on 24 December? Do you see the rally continuing after Christmas also?
Dia Deshpande made post

What is your outlook for the weekend trade on 24 December? Do you see the rally continuing after Christmas also?

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diksha shah answered.
4 weeks ago
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The bounce in the markets on Tuesday and Wednesday has been nothing short of stunning. After the virtual carnage that we saw on Monday as well as in the first half of Tuesday, the Nifty and the Sensex have recouped more than 60% of the losses of the week. This clearly shows that the momentum is still on the buy side, so that should be the broad approach.

If you look at the trade on Wednesday, there was buying across the board with sectors like IT, pharma and FMCG doing well. The advance decline ratio or the A/D ratio of 42:8 also showed that the buying was largely broad-based. In fact, on Wednesday the real rally was visible in the mid cap and the small cap indices, giving more legs to the rally.

FPIs were net buyers to the tune of Rs.536 crore while DFIs sold Rs.1327 crore on 23 December. While the FPIs continue to be buyers in the Indian markets, the intensity appears to have temporarily waned in the last week of the year. However, it must be noted that FPIs have infused nearly Rs.110,000 crore into Indian equities in November and December.

Global markets continued their rally on Wednesday ahead of the Christmas weekend as the Dow and the European markets showed positive traction even as the NASDAQ was marginally lower. In early trades, the SGX Nifty is trading positive but one can look forward to some squaring of trader positions ahead of a long holiday weekend.

Perhaps, the most gratifying news for the markets is about the sharp fall in the VIX or the volatility index on the Nifty. After shooting up by nearly 30% to 26 levels on Monday, VIX has consistently tapered from 26 to 23 and then from 23 to 20 in just 2 days flat. This shows clearly the high level of confidence that traders and investors have reposed on India.

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