Last week witnessed a rare combination of three events: the end of the financial year, expiry of the derivative contracts and a badly truncated trading week.
Six of the last four weeks went in favour of traders who had put options in their trading portfolios.
Last week, too, any trade with a bullish bias met with a bad ending. In line with the trend, most indices, no matter based on market capitalisation or sectoral differentiation, closed in the red.
Last week can be divided into two parts. In the first part of the week, the Nifty notched up gains of 2 per cent.
The market literally had a roller-coaster ride last week. Thankfully, the highly volatile week wound up with a less than half per cent cut in the Nifty.
In the last ten years, probably only two years, 2009 and 2013, qualify as being the best years for equity investors. Paradoxically, nothing was going right for the market in those years.
Last week was the sixth one in a row where traders with put options made gains, as the Nifty slipped and broke the low it had formed earlier in February.
The Nifty lost 225 points last week, but the decline in individual stocks was far more than what the Nifty could reflect.
It was yet another week in which the Nifty could not fully capture the market’s mood and sentiments. On a weekly closing basis, the Nifty has lost just 33 points.
The March series started on a bullish note with the Nifty logging gains on day one, but it could not sustain the momentum, as the broader market was weak.