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Market's bull run may stay, 'too strong' derivatives data a concern
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SME Times News Bureau | 28 Nov, 2020
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.
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.
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.
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.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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