Home / Business / Money / Nifty surges 2% on FO expiry, cracks 5.6% in August series

Nifty surges 2% on FO expiry, cracks 5.6% in August series


TheNewsInternational Team

Bulls gained complete control over bears on Thursday, the last day of August series, as equity benchmarks climbed 2 percent, taking cues from the Wall Street post temporary easing of China-led turmoil. Short covering and value buying in major heavyweights like HDFC, ITC and Infosys helped the Nifty close August expiry above 7900-mark.

The 30-share BSE Sensex surged 516.53 points to 26231.19 and the 50-share NSE Nifty rallied 157.10 points to 7948.95. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising around 2.5 percent each, largely driven by short covering. The market breadth remained strong as about 1993 shares advanced against 686 shares declined on the Bombay Stock Exchange.

Experts are not sure that the market has bottomed out after around 1600 points fall on the Sensex in previous three consecutive sessions. According to them, global factors (especially China-led) may play key role in near term, though India’s fundamentals remain strong.

Nitin Jain of Kotak UK MF said India remained a bright spot among peers. According to him, this is the time to increase allocation to markets.

“There has been monetary prudence after Raghuram Rajan took over, there has been political ability [after the government change] and oil is now a semi-permanent gain for consumers,” he reasoned.

August was the worst series for market in the last two years. The Nifty crashed 5.3 percent (Sensex lost 5.6 percent), the biggest fall in absolute terms since August 2013 due to global factors, especially China-led. Bank Nifty shed 6.6 percent while CNX Midcap lost 3.4 percent and BSE Smallcap fell 6.3 percent.

Traders said the rollover has picked up on short side, which indicated that there may be one big fall in September series.

Sahaj Agrawal, associate vice president- derivatives, Kotak Securities expects Nifty to find support at 7750 level and buying support if lower levels are tested.

More to come…

Leave a Reply

Scroll To Top