Stock markets settled with decent gains on expiry day on Thursday, providing some relief to the participants. After a flat start, the Nifty traded in a narrow range in the first half, but a swift rebound in index majors in the latter half completely changed market trajectory. In the absence of any major global triggers, strengthening rupee supported the up move. Also, it was short covering on the expiry day which played the trick and helped the Nifty to move above 8100 and close at 8103.60, up by 68.75 points. The Sensex, on the other hand, closed the day up 155.47 points at 26366.15.
An Angel Broking report said that in the last couple of days, the market witnessed a good amount of build-up in Index Futures, which was blend of both long and short positions. However, the quantum of shorts formed was comparatively more than the longs which were not so encouraging. On the Index Options front, the market witnessed writing in 8050-8100 call options and good amount of profit booking in 7900 put strike; hinting towards a probable expiry between 8000-8050. However, the momentum was so strong. The Nifty even managed to surpass the higher end and eventually went on to conclude the December series tad above the 8100 mark.
You may also like to watch this
Talking about the market, Jayant Manglik, President, Retail Distribution, Religare Securities Ltd, said, “Traders should remain cautious and see how things pan out tomorrow, being the last trading session of the calendar year. Meanwhile, stay light and prefer only quality counters for trading and investment.”
Sameet Chavan-Chief Analyst- Technical & Derivatives, Angel Broking, said, “Rollovers percentage during the day jumped from 55% to 65%, which is above its averages. Although it’s too early to take a call, we anticipate that the decent amount of short positions formed is probably out of the system and longs positions have been rolled over to the next (January) series. We may see continuation of today’s move at least for the next few trading sessions.”