MUMBAI: The market continued its bounce on hopes of some headway being made in talks between Russia and Ukraine. The Nifty rose 1.45% to 16871.3 and the Sensex jumped 1.68% to 56486. The markets have risen for the fifth straight sessions, since Nifty made a low of 15711.45 on March 7. But analysts view this as a technical bounce and a sell on rise market.
“I am still not comfortable given the news flows and the elevated levels of volatility,” said Siddarth Bhamre of InCred Equities. “There could be more upside to this bounce, but it would be sold into in all the likelihood.”
FIIs continued to be sellers, having sold a small sum worth a provisional Rs 176 crore, while DIIs purchased shares worth a provisional Rs 1,099 crore on Monday. Also, FIIs covered their shorts on index futures like Nifty and Bank Nifty, which added “more bang to the buck,” in the words SK Joshi, director, Khambatta Securities. Covering a short position entails buying it back to cut losses. FIIs covered 6583 index futures contracts, adding to the rally.