Indian equity benchmarks gained more than one percent in a strong session on Thursday, powered by broad-based gains. Financial, oil & gas, IT and FMCG shares were the biggest boosts for both headline indices.

The May series is starting extremely light despite the rally of the last two-three days. The FII short exposure in the index future is at 65 percent, so the long exposure is only 35 percent. The market is light. The market will not rally just because it is light but if there is any good newsflow then the market has the base formation to rally. That is the short point.

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All of this as long as 16,824 is holding, which is last week’s low. If that is holding then this is the market in which the risk-reward is in your favour to buy on dips rather than sell on rallies. That is perhaps the larger texture for this market.

Watch the accompanying video of CNBC-TV18’s Anuj Singhal for more details.

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