The market has a tendency to surprise even veterans of the trade. Some market surprises will be remembered and factored in for years on end. The eventful last week held many such surprises.
Despite positive macro developments, the Indian market went into a corrective mode last week.
A key purpose of derivatives instruments is to give a protective cover to one’s trade against event risks.
Last week, the short-covering rally during the November series expiry took the bears by surprise. The bear operators had a busy day on Thursday, making haste to cover their positions.
After eight weeks, call option buyers heaved a sigh of relief last week. Notably, there was short covering in some good but controversy-hit financial sector stocks.
The September quarter earnings season is now behind us and weighty analyses of corporate performance have also subsided.
Despite favourable macro developments, indices witnessed correction last week.
After two consecutive weeks that gave good gains to traders with long positions, last week saw traders with put options gaining and looking forward to more gains.Their optimism comes from the fact
For yet another week, the Nifty had remained range-bound, but with underlying volatility.
The Nifty's zig-zag move for the large part of last week was a double-edged support for the derivative traders, as that presented an opportunity for contra trade, with quick, high returns.