Is the stock market rally a case of dead cat bounce or festive cheer?
Dancing to the wild tunes of the international markets, Sensex rallied over 1,276 points on Tuesday in a roller-coaster ride after Monday’s 638-point crash and left Dalal Street investors wondering whether the upside was more than a case of dead cat bounce After strong September sales data reported by passenger vehicle manufacturers, banks also left analysts impressed with their quarterly business updates. Nifty Private Bank was the top gainer among major sectoral indices on Tuesday as it rallied over 3%. The rising interest rate scenario is also expected to lead to higher net interest margins (NIMs) and attract deposits. Following suit, US bond yields fell in tandem with the US dollar. We believe that investors should buy good quality companies available at reasonable valuations in this rally and not get caught on the wrong side if the market expectations of the Fed pivot don't hold true,” said Nishit Master, Portfolio Manager, Axis Securities PMS.On 16 out of 22 occasions, buying on dips during September-October resulted in positive returns in Q4 of the calendar year, shows data from brokerage firm ICICIDirect. While the medium to long-term outlook for the overall market remains positive, we could see volatility in the short run, with the market responding in either direction, Axis Securities said. Source - The Economic Times #Stock#stockmarket#investing#trading#forex#money#entrepreneur#Nifty