Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
- Nifty ends the series at its lowest point
- FII's 'Long Short Ratio' at 44 percent
- Market expected to remain volatile
"Nifty started the September series on an optimistic note around the 11600 mark. However, the markets failed to carry the optimism for much longer and the correction in global markets led to a decline in our markets too. Post a corrective move upto 11185, Nifty pulled back higher towards 11600, but it sold off sharply from there at the end of the series and concluded at the lowest point at 10800, with a loss of about six and a half percent.
During the series, we saw long unwinding in Nifty, but the banking index witnessed short formation which led to its underperformance and it registered a loss of over 13 percent. The rollover in Nifty is at 70.6 percent which is lower than its average of 76 percent, while rollover in Bank Nifty is at 79 percent versus its average of 77 percent. This indicates that shorts in the banking space have been rolled into the October series. FII's started the September series with a good amount of long positions, but as the series progressed they unwound their longs and formed shorts too. Their 'Long Short Ratio' at the start of the new series is at 44 percent.
We could see some higher volatility at the start of the series. On pullback move, the index could face resistance in the range of 11100-11200.Traders are advised to trade with a stock specific approach and watch out for further developments."