Sensex jumps 800 points, Nifty above 23,200; IT stocks rally
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that market has been oscillating between some hope and fear during the last four days.
“There is potential for the market to move up since hope of de-escalation is back. Israel PM’s remarks yesterday indicate that there won’t be further attacks on Iran’s oil and gas infrastructure. This has cooled the Brent crude to $ 106 from the peak of $118 yesterday,” he added.
“The gains which Nifty accumulated in the previous three days have been completely wiped out with the 775 point loss yesterday. This oscillation between hope and fear is likely to continue in the near-term.
The HDFC issue impacted Nifty Bank significantly yesterday and it also contributed to the crash in Nifty. This is likely to be a storm in a tea cup.
Even though the uncertainty continues, the market construct is ripe for a bounce back today. Beaten down financials and autos are set for a bounce back.