Last one week has been extremely volatile with market tanking till levels of 16450 on Monday last week and then making a swift comeback till 17000 levels and then starting this week with another 250 points gain currently.
To be frank, nothing much has drastically changed in terms of news-flow locally to warrant a 1000 point fall initially or 1000 point recovery thereafter. FII Cash selling is relentless. So what’s driving the rally?
Is this rally driven by DIIs keeping in mind the year end NAV management?or is this because of following global triggers (US markets trading at all time highs) ?
If its the former case, then the rally which is on from last week should most likely take a halt after the year end as FIIs may fully be back from holidays and resume their selling with more intensity. If it is because global markets are back on track after digesting omicron related news-flow, then we may infact see levels close to 17600-800 by end of Jan 1st week.
It’s frankly extremely confusing. What are your views on this rally?