InvestorQ : What is your view on the market for 23 December? After the sharp bounce on Tuesday, should I buy in the market or sell at higher levels?
Dhwani Mehta made post

What is your view on the market for 23 December? After the sharp bounce on Tuesday, should I buy in the market or sell at higher levels?

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diksha shah answered.
6 months ago
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The market has been a virtual see-saw in the last two days. On Monday, the Sensex went as much as 2037 points lower before closing 1407 points down. However, on Tuesday, the Sensex was 450 points down but ended the day 453 points higher.

The markets began weak on Tuesday, but most of the action happened in the last couple of hours. In fact, towards the end of Tuesday a mix of short covering and fresh buying resulted in the Sensex bouncing 900 points from lows. A/D ratio was strongly positive on Tuesday.

Ironically, it was the defensives that led the bounce in the market, although the high beta names also participated. The rally in the second half was largely led by the IT and the Pharma stocks, which were among the major gainers adding over 3%.

Foreign buying turned positive after a one-day aberration on Monday. FPIs were net buyers of Rs.1153 crore while DFIs sold Rs.662 crore on Tuesday. However, the quantum of net buying was small indicating that a lot of action happened in the F&O space.

Among global indices, the Dow Jones remained under pressure losing over 200 points but the NASDAQ was in the positive. Europe was largely positive gaining over 1% across FTSE, CAC and DAX. The SGX Nifty trades 35 bps lower in early trades and we await Asian cues.

Finally, there is one key parameter that you must actually keep an eye. That is the VIX or the volatility index. It shot up by 25% on Monday. Although it retreated on Tuesday, at 23 levels it still shows good degree of fear among traders. That could create volatility going ahead.

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