There was fear of a lockdown in Maharashtra which triggered Monday's large sell off. This has offered investors a good lower level for buying into the market again. With large buying observed yesterday, it is very likely that the market is ready to move back towards the all time high levels.
Technically as well, there is a flag and pole pattern observed on the weekly charts, which is a . A breakout above the top trendline will likely enable to market to make fresh all time highs above 15,400.
The dip has offered a great entry point for building long term portfolios with a lot of stocks correcting more than 10%, especially the financials. ALthough FIIs have been selling, DIIs have been net buyers for the entire period where Nifty is declining. DII activity is a good indicator of the long term expectation of the market.
The coming week may see a fresh uptrend emerge with companies announcing their FY 2020-21 in April.