Last week, traders had started talking about the possibility of the Nifty 50 index – then at 8,950 – moving beyond 9,000 and making new lifetime highs. Just three trading days later, the index is back at 8,700.
Globally sentiment has weakened. Foreign institutional investors have sold index futures and bought index put options. Is this a cause for concern or are FIIs only hedging against their long positions?
On BloombergQuint’s ‘Surf’s Up’, which tracks weekly trends in the futures and options market, Gaurav Bissa of LKP Securities says he expects the indices to see some pressure but won’t aggressively take short positions. He prefers to wait for the Nifty to breach 8,700 on the downside before buying the 8,600 put. In the case of a bounceback, Nifty is likely to remain rangebound between 8,700-8,850 in the near term. For more, on where the markets are headed, listen in.