By Sameet Chavan
On Tuesday, US markets extended their losses but yesterday morning (Thursday) we saw some recovery in Dow futures and Asian bourses also looked cheerful. Despite this, our markets started correcting after a flat start. Barring a small recovery in the first hour, we witnessed continuous selling pressure thereafter. In fact, post the mid-session the selling augmented to slide below 17700 as well. Fortunately, due to some modest tail end recovery, Nifty managed to minimize the damage to a per cent.
Despite sharp sell-off in last three sessions, we could hardly trace any relevant short formation in both the indices; this fall was mainly due to profit booking. However, stronger hands continued selling equities and added bearish bets in index and stock futures segment. Although the market experienced decent selling, the Nifty premium surged yesterday and the volatility index decreased marginally. Meanwhile, the PCR-OI remains in the oversold terrain. Considering the above observation, the possibility of some respite cannot be ruled out.
(Sameet Chavan is a Chief Analyst-Technical and Derivatives at Angel One. Views expressed are the author’s own. Please consult your financial advisor before investing.)