Sanjiv Bhasin positive on markets, says 'buy the fear'

Indian markets turned volatile in noon trade today and were trading off day's highs. Nifty today traded in the range of 14,854 to 14,651 as compared to the previous close of 14,675. Nifty is off about 4% from post-Budget highs of 15,431.

"Spike in crude and rising bond yields in the US is sending jitters in Indian markets with higher volatility due to derivatives contracts expiry week. From overbought reading last week market has got deeply oversold as bears try to make a killing," said Sanjiv Bhasin, director of IIFL Securities.

"However rise in crude and yields should be construed as an bullish indicator for global growth more US stimulus and vaccination across the globe is picking up momentum. Buy the fear," he added.

Indian equities rose sharply in the first two weeks of this month thanks to solid corporate earnings and a well-received Budget, before trimming some of the gains due to profit-taking.

Among the Sensex stocks, RIL was up 1.2% after the company said it expected to get approvals by the second quarter of the next fiscal year to hive off its oil-to-chemicals (O2C) business.

Other Asian stock markets were mixed as higher US Treasury yields and inflation prospects dented investor mood.

"Globally, rising crude prices and bond yields are a cause of concern, but these are short-term negatives and things are looking up in India," said Rusmik Oza, head of fundamental research at Kotak Securities.

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments, said: "Until we do not get past 15100 on the Nifty, any up move should be utilized as an opportunity to go short. The index has a support range between 14500-14700 but given the high volumes traded yesterday, there is every possibility we break that range."