The market continued to trade on a weak note on February 28 morning. At 10.20 am, the Nifty was trading flat at 17,390.85 and was on course to end the month of February lower.
On the options front, 17,400 saw both fresh put and call writing as many traders deployed a neutral Straddle strategy. The strategy is profitable as long as the market does not move in any one direction.
“I have a bearish view on the Nifty,” said Rajesh Sriwastava, a Bengaluru-based derivatives trader, who has taken short positions in the Nifty as well as the Bank Nifty. “It may move lower as the day progresses.”
Media sector, thanks to the refound zeal in Zee Entertainment, saw a long buildup, a bullish scenario when price and open interest rise in tandem. Infra and capital goods also saw a long buildup.
Metals, oil & gas and pharma were seeing a short buildup, a bearish scenario when price fall but open interest rise. Vedanta was among those that saw the biggest bearish pressure, followed by Hindalco Industries, Coal India and Glenmark Pharma.
Adani Group stocks were seeing some low-level buying. Traders also adjusted their positions accordingly. Samvardhana Motherson and Ashok Leyland also saw a long buildup.
Sriwastava said he has taken a long position on Voltas. Manish Shah, a certified research analyst, said it was becoming difficult to find trading opportunities.
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