The market started yet another week truncated by holiday on a positive note, keeping up the momentum it gained last week. The Nifty 50 index was up 45.35 points to 17,643 as of 9.45 am on in the morning hours of April 10.
Post-weekend buying in Asian markets also lifted the trader sentiment. Some of them, however, believe that this is the beginning of an end to the rally. Thus they have trimmed down their expectations accordingly.
“Tomorrow may be the last day of this rise,” forewarned Rajesh Sriwastava, a Bengaluru-based trader. “If we add all stocks, all strikes and take the volume and multiply that by the price of options then it shows that put unwinding is happening and call writing has started.”
On the options front, positions indicated a range bound trade for the day.17,600 was seeing most put writing as it emerged as the support, while 17,700 saw maximum call writing as it was the resistance for the day.
Sectors that were in focus were realty and power as they rode on stellar business updates. Technology, metals and FMCG were seeing accumulation of short positions.
Indian Energy Exchange was one of the top gainers that saw heavy long buildup as bullish traders converged. Chola Finance continued its rally, followed by Godrej Properties, M&M Financial Services, BHEL and Can Fin Homes.
Vedanta continued to bleed as traders added to their short positions. Dabut joined the fray along with Page Industries. Bata India and Dixon Technologies.
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