Hexun Investment Advisor Wang Jigang: Why do funds still approve despite a bottoming out and rally with decreasing volume?

The market closed, and today it experienced a bottom-fishing rally, with all three major indices ending in the green. However, due to reduced trading volume, the strength of the upward movement, particularly in the last hour, was still lacking. Ultimately, it formed a consolidation structure, which is still a positive sign, indicating that capital recognizes the 3850 level.

Wang Jigang from Hexun Investment Advisory previously expressed the view that even if there is a need for a second bottom test, it is unlikely that the index will drop below the 3800-point support level, which should be higher this time. Therefore, the important factor for the market right now is the external environment. In terms of the changing conflict situation, I believe it should be relatively neutral over the weekend and will not worsen further, as both sides have now found a way to de-escalate. In terms of sectors, there is still a strong rotation overall, particularly in the lithium battery sector. The upstream lithium mines, positive and negative electrode materials, and electrolytes have also shown a recovery trend. The battery sector remains within a large range, but after consecutive rises, it is now very close to the upper boundary. This position is suitable for those holding positions; for those without positions, chasing at this point may not be cost-effective. However, from the perspective of performance logic, the majority of battery companies currently have weaker earnings, so caution is warranted.

Similarly, the pharmaceutical sector was strong today, and I believe the rebound line is essentially due to excessive overselling. Therefore, this position should be viewed defensively. The structure of the rebound should not be rushed into, as the focus remains on position control. It is better to look for sectors with earnings expectations in April and keep an eye on low-buying opportunities.

(责任编辑：邵晓慧)

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