After five consecutive weeks of gains, the Nifty fell to profit-booking last week and lost 74.05 points in the four-session week.
Unlike in the previous few weeks, last week saw traders with long positions in put options making gains, as the Nifty closed with losses in the last three trading sessions.
In a way, the surprise gains made by the Nifty last week were nothing spectacular. An up-move of 1.21 per cent in a week is quite normal.
Thinking up strategies at the start of a new series may appear an easy thing, but in reality, it is the most difficult task.
Market analysts are wont to get hyperactive twice a year. They get into a compulsive habit of reviewing the performance of various assets classes at the end or start of a calendar year.
Last week was largely an extension of the previous week’s trend. The only difference was that the market breadth got volatile on some days, with slightly negative bias.
This week is an interesting one for the derivatives segment.
After swinging between despair and hopes for many weeks, the Nifty finally stayed stable last week, closing with gains on all the five trading sessions.
Despite the scare over the weekend, when the Dow Jones average slipped sharply and everyone expected the Indian market to come under pressure, call option buyers had the last laugh.
After long, buyers of call options have got some respite. The market moves make it amply clear that while the bulls are under pressure, they are in no mood to yield ground to the bears.