After almost a year-and-a-half, the equity market witnessed what can be called a correction.
Last week really tested the guts of derivative traders. The volatile week rewarded only traders who had the courage to bet against the prevailing market sentiment.
A trouble with the equity market is that people always look for reasons behind the market moves.
From the way Nifty options, both call and put, carried time value before the budget day, it was clear that massive hedging was going on.
The Budget presentation is a super-event for the stock market. Or so we thought. It is also that time of the year when fortunes in individual stocks are made or busted, for a fortnight, at least.
Equity investors are in the constant quest for a sector that will fetch them extraordinary returns.
Unlike in developed countries, where retail investors make equity investments largely through qualified professionals or institutions, in India, most investors prefer to take things in their hand a
Until a fortnight back, the market almost belonged to the buyers of call options. However, the scene has changed last week.
Index movement shows we just had a bearish week. The Nifty ended last week with a loss of 1.25 per cent. Despite this, the sentiment, however, was more or less intact in the broader market.
Call option-holders were at a clear advantage last week, as the Nifty broke its previous high and gained more weight in a short span of time.