Is it a good sign that the Nifty and the Sensex recovered sharply for the Friday ending 20 March 2020? Can we say market has bottomed out?

The bounce on Friday comes after nearly 4 days of consistent and harsh selling. Hence it looks like more of short covering and less of any kind of fresh buying. That is evident from the colour of the markets. The Sensex settled 5.75% or 1,627 points higher at 29,915, the most in a single session since May 2009. However, on a weekly basis, the m market still sharply down by over 12%. In fact, both Nifty and Sensex logged worst week since 2008. The bounce was more in sync with Asian and European markets and was more of a relief rally driven by technicals rather than any fundamental change. Also there is hope that more liquidity will come into the markets as central banks loosen the tap a little more. It is hard to pin down support areas after such a sharp correction. However, the markets should heave a sigh of relief as long as the Nifty holds 7500. Some of the big gainers on Friday were the likely dividend candidates like ITC, ONGC and GAIL.