InvestorQ : How do you see the markets on 26th August? Do you see the market correcting due to F&O expiry?
Debbie Mascarenhas made post

How do you see the markets on 26th August? Do you see the market correcting due to F&O expiry?

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diksha shah answered.
4 months ago
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I will come back to the expiry query later. First let me take you through how markets performed on Wednesday. On 25 August, Nifty closed flat with gains of just about 10 points. The major Nifty gainer during the day was Adani Ports on the back of its approval for the Gangavaram Port acquisition. Some metal stocks also bounced back.

Overall, the trend in the last few days has been that the A/D ratio has been under pressure and on Wednesday a total of 28 out of 50 Nifty stocks declined over the previous day. It surely looks like the broad based enthusiasm in the markets appears to have waned away and got converted to reflect the uncertainty in markets.

Foreign investors were net sellers of Rs.1,052 crore domestics sold Rs.151 crore of equities on 25 August. Global markets were also largely mixed. The US markets were marginally up while the European markets were mixed. The SGX nifty is trading around 12 bps lower on the back of F&O expiry and the last few hours could be critical.

F&O expiry is likely to really test if long positions get carried forward. Clearly, FPIs have been building positions in put options and we could see fresh puts being created in the next month which could give rise to further pressure on the markets. Hence a clearer picture will only emerge on Friday.

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