Speaking with ET Now, Rohit Srivastava, Founder, Strike Money Analytics & Indiacharts said, “We were coming close to the end of this selloff, and today’s move only strengthens that view. Momentum indicators have turned bullish, and we have seen positive divergences along with oversold conditions similar to past market bottoms.” Adding to the optimism, the outlook for the index remains constructive in the near term. “This could be the start of a bounce or rally, and I do not think the upside is done. We could add another 500–1,000 points and cross 24,000 in the days ahead.”
The rally was supported by strong buying in PSU banks, a segment that had seen a sharp correction in recent weeks. Stocks like Punjab & Sind Bank, Bank of Maharashtra, and UCO Bank led the gains, rising around 5% each. The move is being seen largely as a technical retracement after a steep fall. “The PSU Bank Index fell sharply, and a move back to 8,000–8,500 looks feasible as a retracement.” While the near-term opportunity appears promising, caution remains on whether this can evolve into a sustained trend. “There is a good trading opportunity in PSU banks, and we will assess later if it turns into a bigger move.”
Meanwhile, the IT sector, which has been under pressure for an extended period, is showing early signs of stabilization. Supported in part by a weaker rupee, IT stocks have held up well during recent bouts of market volatility. “IT stocks seem to have bottomed around March 17, and we have not seen a lower low since then.” The recovery, however, is being viewed more as a short-term opportunity rather than a structural shift. “This looks like a tradable bounce for the next one to three months, though the long-term outlook remains uncertain.”
Overall, the market mood appears to be shifting from caution to selective optimism. While technical indicators and oversold conditions point to a possible recovery, the sustainability of this rally will depend on how markets respond to evolving global cues and domestic triggers in the days ahead.
