The
Indian market has shown resilience amid global turmoil, thanks to
smart buying by domestic institutional investors (DII), but the
Sensex is still down over 700 points from last Friday's closing level
of 27,366.07.
The
Sensex has, however, managed to rally nearly 1,000 points in just two
trading sessions, including Friday's intraday movement of over 400
points, fuelling the potential of further upside. The Nifty has also
managed to reclaim its crucial psychological level of 8000.
The
September month is likely to remain volatile as derivative market
participants carried forward short positions to the September series
from the August month. But any dip should be used as a buying
opportunity as the Indian market is still a buy on dips for the long
term.
"India
is not a sell on rallies market but, in fact, it is still a
buy-on-dips market. We made a call earlier this week saying that we
have seen one of the highest capitulations in the Indian stocks in
the last five years," says Sandeep Tandon, MD & CEO, Quant
Capital.
"This
is the second largest capitulation after September-October 2008.
Basically, this is the second largest capitulation which we have seen
in the frontline after the Lehman crisis. Whenever we see this sort
of capitulatory move, either the market has already made a bottom or
we are very close to a bottom. Therefore, the bottoming process is
now in final stages," he added.
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