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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Having broken below 5400, which was a key derivatives support for the index, the 5200-mark is now the eventual hope for bulls. This also happens to be the strike with maximum put optionsbuild-up. On the way up, the all-important 5400-mark will now become a key resistance for the index.
The increased risk in the market is evident from the gradual move-up in the Nifty implied volatilities in the past few sessions which stand at over 21 at the moment.
FIIs, too, after staring the series with aggressive buying in Nifty futures have resorted to selling in the past couple of weeks. Having sold close to 1,800 crore in the past two weeks, they are now buyers to the tune of roughly 1,500 crore for the series.
It, thus, remains a sanguine period for Indian equities and any hope for a sustained recovery is suspect till we sustain below 5400. A break below 5200, on the other hand, has the potential to trigger some sharper, panicky cuts.
On a sectoral basis, Real Estate was the key sector to witness the brunt of shorting activity in Monday's session even as the broader markets attempted a modest bounceback. Minor short-covering was witnessed in oil&gas stocks.
Amongst index heavyweights, Hindalco and IDFC are the key stocks heavy on short positions and are suspect to short-covering led-up moves in the event of a broader market bounceback.
(Gaurav Mehta, Derivatives Analyst, Ambit Capital)
The increased risk in the market is evident from the gradual move-up in the Nifty implied volatilities in the past few sessions which stand at over 21 at the moment.
FIIs, too, after staring the series with aggressive buying in Nifty futures have resorted to selling in the past couple of weeks. Having sold close to 1,800 crore in the past two weeks, they are now buyers to the tune of roughly 1,500 crore for the series.
It, thus, remains a sanguine period for Indian equities and any hope for a sustained recovery is suspect till we sustain below 5400. A break below 5200, on the other hand, has the potential to trigger some sharper, panicky cuts.
On a sectoral basis, Real Estate was the key sector to witness the brunt of shorting activity in Monday's session even as the broader markets attempted a modest bounceback. Minor short-covering was witnessed in oil&gas stocks.
Amongst index heavyweights, Hindalco and IDFC are the key stocks heavy on short positions and are suspect to short-covering led-up moves in the event of a broader market bounceback.
(Gaurav Mehta, Derivatives Analyst, Ambit Capital)
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