Wednesday, January 27, 2021

Market’s bull run may stay, ‘too strong’ derivatives data a concern

- Advertisement -

Mumbai, Nov 28 (IANS) The bull run in the equity market is likely to continue in days ahead, but the only concern at this point is the “too strong” derivatives data, which may lead to a rapid sell-off in case of a course reversal, according to a report by Motilal Oswal Retail Research.

The report said that at current juncture, market is in bulls grip and dips are getting bought into quickly. Nifty’s derivatives data is also positive and it indicates continuation in ongoing momentum.

It however said FIIs index futures data signifies they are overbought in Indian market and any unwinding of longs or fresh shorting may lead to a correction in the market.

Thus, some cautious approach should be adopted at these levels it said.

“As far as levels are concern, index is moving in uncharted territory and 13,500 would a hurdle as per options data. On the flipside, major support exists at 12,700 then 12,350 zones. The only concern at current juncture is too strong derivatives data and in case of any reversal, the sell-off can be fast,” said the report.

READ ALSO:  Only purchase of jewellery above Rs 2 lakh needs mandatory KYC

It was a historic month for the market as Nifty posted highest ever series on series gains (in absolute term). Bulls were aggressive from the start of the November series and kept the ball in their court throughout the series, said the report.

Index marched above 13,000 mark for the first time in history and managed to conclude the November expiry a tad below the same. It gained by 1,316 points or 11.28 per cent over its October series close. Nifty started the November series with some long positions and bulls didn’t miss any chance to enjoy the festive session.

Traders cherished the outcome of US elections and Diwali festival as Indian markets reached to the record highs along with rally in global markets.

READ ALSO:  Ayodhya put on high alert following terror threat

Buying interest was seen across the board as all the sectoral indices ended the series in green. Among them, banking, financials and metal indices were major gainers.

FIIs have made highest monthly buying in November. The report noted that except marginal selling on first trading session of November expiry, they were significant buyers on all other sessions.

READ ALSO:  Only purchase of jewellery above Rs 2 lakh needs mandatory KYC

They have pumped in around Rs 56,733 crore in November series. FIIs also continued their buying streak in index futures for major part of the series and as a result, their ‘Long Short Ratio’ has increased from 44.54 per cent to 76.63 per cent on series-on-series basis.

“This has helped the index to cross the 13,000 mark,” it said.

On the other hand, DIIs have been selling non-stop and cumulatively sold equities to the tune of Rs 42,719 crore in November series.

Source: IANS

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News


Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

Congress demands sacking of Home Minister over Delhi violence

New Delhi, Jan 27 (IANS) A day after violent clashes broke out between the police and the protesting farmers in the heart of the...

Cryptocurrency industry hopeful as RBI mulls over digital currency

New Delhi, Jan 27 (IANS) With the Reserve Bank of India (RBI) now saying that it is exploring the need for a digital version...

45 buses damaged in Jan 26 violence, says DTC

New Delhi, Jan 27 (IANS) At least 45 Delhi Transport Corporation (DTC) buses were damaged in the violence on Republic Day as section of...

Tractor rally violence: Plea in HC seeks removal of Delhi top cop

New Delhi, Jan 27 (IANS) A petition has been filed in the Delhi High Court seeking removal of Delhi Police Commissioner S.N. Shrivastava from...