Nifty Updates

Q: What is your call on the Nifty now?

A: Position ally, we are bullish on market. We do not see any structural change as of now. But for remaining part of series, we are not very optimistic. When I say we are not very optimistic, we are not expecting a major correction.

We have few reasons to state that we are not bullish for the remaining part of series. First and foremost, look at the change in open interest in mini-Nifty. We all know that mini-Nifty is traded by weaker hands of the market. The open interest more than doubled in the last seven-eight trading sessions.

Most of the built up happened when the market corrected from 5,800 to 5,700. Somebody would be misguided that it might be a short built up, but we were saying that there was a left out feeling in the market, people were waiting for correction. During this correction, a lot of long positions got accumulated in mini-Nifty around 5,750 level. These guys are still not making money. They are in loss. I am talking about the weaker hands. Though the activity has reduced slightly in the last two-three trading sessions, they still remain long. They have not squared off their complete long positions.

Even if market stays here, FIIs do not lose, but weaker hands may end up making losses in call options and also in mini-Nifty futures. I believe that for remaining part of October series you may not see much of a price moment. So, we are expecting time correction in this market rather than price correction for October series.