F&O Talk| FIIs long-short ratio at oversold level, deploy Bull Call spread, says Chandan Taparia of Motilal Oswal
index S&P BSE Sensex rose to new highs on Friday to 76,795, recovering from its sharp declines on election outcome day. Both indices, Nifty50 and BSE Sensex managed to close the week above their close on Monday.
The week was a roller coaster for the traders, but with the elections behind us, one needs to move on and focus on the calls of the new all-time highs that might be awaiting.
Chandan Taparia, CMT, CFTe, Head — Derivatives & Technical, Senior Vice President – Research, at Motilal Oswal, interacted with ET Markets regarding the outlook on Nifty and Bank Nifty along with an index strategy for the upcoming week. Following are the edited excerpts from the interaction:
After such a sharp decline on Tuesday, the markets recovered pretty soon. This does not seem to be a common phenomenon. What could be going on in the minds of the traders? How can one read these zigzag movements?
Nifty started the week on a bullish stance by taking positive cues from Exit Poll outcome and made an all time high of 23,338 marks. But it failed to hold its momentum on Tuesday and drifted sharply towards 21,281 levels. It managed to hold lower zones and fresh buying interest supported the market to reclaim 23,100 zones. It witnessed a roller coaster ride with V shape recovery in the entire week as it corrected by 2,000 points from 23,338 to 21,281 and then saw a sharp recovery of more than 1,850 points. Entire price structure indicates that bulls are back in action and meaningful decline is being bought smartly.
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