Market volatility spikes, but Nifty's downtrend unlikely to change: Rohit Srivastava
«So, the pressure for the day will at least remain. But I do not think the trend is likely to change going forward even though we have seen some bounce back in global markets,» says Rohit Srivastava, Founder, Strike Money Analytics & Indiacharts.
It is turning out to be a bit of a wobbly day. Even though volatility is spiking, overall action in the market in terms of the ferocity is missing. What do you make of the next couple of days? How is it likely to end the year for Nifty?
Rohit Srivastava: So, it looks like a pretty much weak month and because we actually have expiry pretty early, last couple of years it was happening around the 30th or 31st. This time it is right around Christmas.
We will get to know the fresh positioning of the market tomorrow, which is, do we really end up rolling forward a lot of the shorts that are in the system, which FIIs are holding, they have actually added back shorts over the last couple of days. So, from 30,000 contracts to almost 150,000 contracts and that shows their consistent bearish view on the Indian market. So, we are not really seeing much of a bounce, that also because there has been a lot of call writing since last week and being expiry day, I do not think anybody is really squaring up their position.
So, the pressure for the day will at least remain. But I do not think the trend is likely to change going forward even though we have seen some bounce back in global markets. So, we look for lower levels. Upside is sort of capped. Best case scenario, if you do get a
