The Nifty’s moves last week show the bulls have come under pressure. This is natural as the Nifty has been outperforming and so is prone to pressures.
After two months of baffling upward movement, the Nifty finally corrected last week. The good part is that it was a tradeable correction that gave decent returns on some short positions.
Till a fortnight ago, call option buyers came up as the lucky ones, as there were very few corrective movements in the Nifty.
Volatility is part of the expiry week and the last week was no exception to this habit.
While the Nifty and broader market indices last week pointed to a bullish undertone, there were also moments when the scare of correction visited the Street.
Most investors come to the equity market with a notion that it is an easy place to make money. True, equity as an asset class tends to outperform other asset classes over the long-term.
For the second week in a row, trading on the bourses was limited to four sessions, but accompanied by good market breadth.
The broader market indices stood their ground last week, refusing to go down at the close. Compared to that, the Nifty saw recovery from the day’s low on three days.
Most short-term traders have made good money in the last two weeks, as some convergence between Nifty moves and market breadth was restored after a gap of about six months.
We had yet another week in which call option holders made gains and the Nifty made another attempt to break its previous high after correcting in tune with international markets.