Today was the second day in row that markets traded in a
tight range with a serious drop in volumes. Today’s volumes were again 40%
lower than average indicating that the whole market was waiting for clarity
from FED to proceed. It also indicated that volatility can be sharp either side
tomorrow due to the pent up move. However some section of players were seen
accumulating 6000 calls where implied volatility was continuously getting bold
since morning. Likewise players were seen also lapping up private banks fearing
that they may breakout tomorrow. Talk in the market was that with Fed policy
overhang gone out of way, markets could again start rallying. Besides Banks, it
was again ITC, Hind Unilever,& Reliance where incremental money was seen
flowing. Nifty spread remained firm between +25 to +30points but BSE Midcap
underperformed for third day.
Further, the market breadth closed slightly positive as
eleven stocks were seen advancing against ten declining stocks.
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