Foreign portfolio investors have raised bearish positions on Nifty and Bank Nifty futures to a three-year high of 171,679 contracts. The positions have been built ahead of the US central bank meeting on interest rates later this week. Analysts say such a bearish creation could cause short-term volatility in the run up to the Fed policy decision on Wednesday.
The benchmark Nifty was trading 48 points, or 0.28 percent, higher at 17,461. Auto, banking and media were the biggest drags. A neutral position such as Straddle means buying or selling both call and put of the same underlying at the same strike.
Stock investors' wealth eroded by more than Rs 2.67 lakh crore in early trading on Friday. The key indices Sensex and Nifty were deep in the red, reflecting weak investor sentiment.
Indian frontline indices S&P BSE Sensex and NSE Nifty extended gains after starting on a cautious note. Buying in bank & financial services, FMCG and auto stocks lifted the mood of the markets. The 30-stock Sensex ended at 61,806.19, up 468 points or 0.76 points while Nifty50 finished at 18,420.45, up 151.45 points.
The market lost around half a per cent in the week ended October 7 amid volatile but rangebound trade. The Sensex fell 271 points to 57,920, and the Nifty slipped 129 points to 17,186. This week is heavily loaded with macroeconomic data and announcements of quarterly results by some major companies.
Benchmark indices ended the session on a negative on the back of negative global cues. Nifty declined 97 points to close at 17,026 down 0.6%. The third day Nifty Index has bounced from the 200 DMA levels.
The 30-share BSE Sensex tanked 1,093.22 points or 1.82 per cent to settle at 58,840.79. During the day, it tumbled 1,246.84 points or 2 per cent. The NSE Nifty declined 346.55 points.
A long negative candle was formed on the daily chart, that has engulfed the long bull candle of Wednesday on the downside. The short-term trend of Nifty continues to be range bound around 18,100 to 17,700 levels. There is a possibility of further consolidation or minor downward correction in the short term.
BSE Sensex surged 104 points and closed at 59,793 levels. Nifty Bank index finished 206 points higher at 40,415 mark. A move below this area could trigger short term downward correction for the Nifty.
