Nifty closer to fair valuations after 11% March crash but is it cheap enough for you to buy?

The broader market sentiment, as reflected by Nifty and Sensex, is recovering from a significant downturn. However, external geopolitical factors and foreign investment trends remain critical for sustained upward momentum.

Maintain a neutral to slightly bullish bias on the overall market, focusing on sectors less sensitive to crude price fluctuations and those attracting FII interest.

For Indian markets, this story mainly matters for NIFTY50, SENSEX. The current signal is mixed, so the key question is whether the move stays headline-driven or turns into sustained price and volume follow-through.

Watch whether the next market session confirms the setup described here: Rebounded after a crash, but sustained rally depends on external factors. Rebounded after a crash, but sustained rally depends on external factors. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Nifty and Sensex rebounded sharply to start the new financial year.
• •The market experienced an 11% crash in March due to Middle East tensions.
• •Nifty's current P/E ratio of 20x indicates fairer valuations, potentially nearing a bottom.
• •Sustained rallies depend on cooling crude prices and FII inflows.
• •Risk flag: Escalation of Middle East tensions leading to higher crude prices.