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.
Like in most part of this month, last week also saw bears dominating the market.
After many months, the February series ended with a decline of more than 5 per cent.
The Nifty’s narrow, range-bound moves last week favoured neither out-of-the-money call option buyers nor put option buyers. Most probably, straddle sellers had gone home happy.
Let’s look at what happened in the last seven days. US bond yields, which are critical determinants of US interest rate direction, went up further, which is a negative for the market.