Sporadic bear market rallies given but not breach of 5300

It's been an absolute blockbuster rally on D-street today. Bourses put up a rock solid performance—a complete surprise considering the start of day's trade. Firm global markets gave that much needed fillip to our markets.

The Nifty piled on a whopping 133 points to close just shy of the 5,000 level. The Sensex too stood out with a 433 point gain to end the day at 16,454.
The market was clearly in the oversold territory at the moment, believes Dilip Bhat of Prabhudas Lilladher. He says these are all bear market rallies and possibly it may not have enough strength to cross 5300.
"So maybe in the short run, yes, we could see some kind of bear market rallies, but on a longer-term, basis about eight-12 months, I still remain apprehensive. I am not one of those who really believe that the valuations are cheap because the way the earnings momentum is at the moment based on the way the GDP data is coming out, I think it’s anything but going to be strong," he told CNBC-TV18 in an interview.
There is lot of pessimism built into the markets, says Tirthankar Patnaik of Religare Capital Markets. And right so. The Indian markets have not been performing over the last couple of months now. The weak GDP numbers did two things: one is, they brought in peak in pessimism and they also build up some expectations as to what will happen on the politics side.
Right now, a couple of things are holding in for the markets. You had rains coming in. Then, we have had very high expectations of a rate cut from the RBI, and today European markets are also up before the ECB rate call, and then we have seen the rupee sort of stabilising at these levels. All of them have sort of worked out. And while in terms of market performance, beta has been doing well, it's basically everything other than the defensives performing today. It's sort of been an all round rally.
"We will see some level of upside coming up from these levels, but what has to be seen is how the global macro pans out," Patnaik says adding, "for India, is think the pain is in the price."