So Finally !! Its Not A 'Dead Cat Bounce' ?

Markets Overview

It is hard to believe that at the start of this month, anybody imagined that in 17 days we would be where we are today. It is good to see that things are resolving and normal markets may be coming back on track.

Regarding the Nifty daily chart, while there is nothing over the top exciting, at least a very nice bounce has happened. The bounce has occurred in such a way that it does not seem like a dead cat bounce; it is a meaningful move because the number of days that have gone into this bounce is almost two weeks. This is a classical V-shape recovery of the market, totaling 1.2%.

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The markets are currently in a state of shock and awe as the NASDAQ has experienced a run of 12 straight days of gains. This represents the longest winning streak in 17 years, a phenomenon not seen since 2009. As noted over the last few weeks, markets often perform in ways that nobody expects, and that is exactly what is playing out now in both global and Indian markets.

Many investors are currently stuck after losing their positions and are looking to buy back into the market as soon as it dips, but the market is no longer dipping. If this trend continues for another week or so, major FOMO, or fear of missing out, will likely kick in for the money that has been sitting on the sidelines.

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