Market expert Ajay Bagga believes that Monday’s market rally was just a technical bounce and had nothing to do with fundamentals improving. The market today closed on a positive note with Nifty ending 2.6 percent up at 7,162 level and Sensex ending at 23,554.The domestic market rally today was supported by the upmove in US market with oil and dollar remaining stable, he says. It was also supported by strong moves on Japan’s Nikkei. Markets will continue to be volatile in coming days, he says adding that global issues like China continue to persist. Investors should stay on sidelines currently as the rally was not convincing, he says. Speaking on the European Central Bank (ECB) President Mario Draghi before the European Parliament on Monday, Bagga says that two crucial things will be looked at. The first one would be the expectations for March considering that while the unemployment has reduced in Europe, economic growth has been stalling, Bagga says. Another thing would be the balance between German and the rest of Europe, he adds.Watch video for more.
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