For all those traders who had forgotten that taking short position is also a trade, the September series was a reminder that a trade can be placed in both directions.
The current corrective phase in the stock market would, in all probability, run for more time.
The Nifty remained under pressure last week, as some large-cap private sector financial stocks continued their southward journey.
Contracts for the September series are scheduled to close this Thursday. The expiry week is usually a test of the market’s balance.
The market can spring a surprise anytime. Consider this. Oil prices have been rising for the past many months and their coming close to the $80-mark is nothing new or unexpected.
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.