Nifty today opened with an upside gap and tested a new all time high at 8534.65 and finally closed at around...
Nifty today opened with an upside gap and tested a new all time high at 8534.65 and finally closed at around 8530, the mood is cautious because the extreme short term indicators are in the overbought zone can cause higher level profit booking. Chinese decision to reduce interest rates and positive regional cues lifted the sentiments. IT and Banking sectorial stocks were in good demand during the day. Going forward banking and financial sector stocks will take the lead. Rate cut by the Chinese kept the metal stocks in the positive territory. Metal stocks are already corrected a lot so a minor support can lift the sentiment positive.
India VIX closed lower by around 6.02% at 13.0175 indicating further uptrend to the market and the open interest PC ratio is still on the higher side, showing the cautious outlook for the investors are ahead of the F&O expiry.
The Nifty and stock options roll-over has already started and good number of positions already rolled over to December series, indicating investors confidence in the days to come. The central government is keen in passing many bills during the winter season of the parliament session.
By Mr. Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd.