Anand James, Chief Market Strategist at Geojit Financial Services, points out the notable surge in the Volatility Index (VIX), emphasizing that its current level is considerably higher than when the Nifty experienced a dip to sub-19000 levels in late October. James suggests that this elevation in the VIX signals a significant increase in volatility expectations.
Reflecting on the market outlook outlined earlier, James acknowledges the underestimated strength of the underlying uptrend, leading to a breach of the previously anticipated objective of 21540. This, in turn, opens up the potential for a further upswing to 21860. However, he expresses concern about the atypical rise in VIX accompanying the recent ascent in the Nifty.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, observes that the ongoing rally seems poised for continuation, driven by strong performance in leading banks that are witnessing institutional accumulation. He attributes the rally's sustainability to positive cues from the U.S. market, steadily declining U.S. bond yields, and the dollar index staying below 101.
Highlighting an important market indicator, Vijayakumar notes the Volatility Index (VIX) rising above 15, signaling heightened volatility ahead. He advises investors to recognize the importance of remaining invested in a bull market but cautions against chasing the market at elevated valuations, which could pose significant risks.
Providing a snapshot of the market, Vijayakumar mentions that the BSE Sensex is up 133 points at 72172 points on Thursday, with NTPC experiencing a gain of more than 2 percent. The positive performance of high-quality large caps is emphasized, indicating their leadership role in the ongoing market rally that has propelled the Sensex above 72,000. As the market dynamics evolve, investors are urged to remain vigilant, considering both the opportunities and potential risks associated with the current market conditions.
(With Agency Inputs)
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