New Delhi, Oct. 18 -- Last week I warned you about the possibility of a dead cat bounce. I also warned you that the rally could be quite vicious because both bulls and bears would be on the same side of the trading terminal (the buy side). That hypothesis was bang on target. I also suggested that my readers err on the side of caution despite FOMO, or fear of missing out. Do note how the neighbourhood markets are trading-Japan, Indonesia and South Korea, to name a few. Excessive leverage (buying stocks with borrowed funds) is causing a landslide-like price decline.

The reason I feel the relief rally might persist is that the Jio Platforms IPO will see markets being supported by institutional players. US President Donald Trump has lifted s...