While currently there seems to be a positive bias, the larger question is whether this rally is sustainable?Usually, when a bull rally ends, the first leg of correction is succeeded by sharp recovery, popularly known as a “relief rally”. However, investors who mistook this as a continuation of the bull cycle were trapped as the indices plunged by 45% thereafter. Similarly, the 2008 bear market saw two while that of 2011 saw four such relief rallies.Coming back to the present, the worst does seem to be over. The ultimate economic impact of the Russia-Ukraine war will only be known with time and will continue to be analysed. We recommend that traders maintain a mild bullish bias for the coming week and continue to buy on dips.

Source: Economic Times March 26, 2022 22:41 UTC