On Wednesday, Bank Nifty showed extraordinary movement of 800 points from a position of intraday low to an intraday high. What propelled this index to close on a high? Will this momentum take the markets further?  Zee Business Managing Editor Anil Singhvi decodes the mystery for the channel viewers! 

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The Market Guru expressed surprise over this dramatical movement of the Bank Nifty. There were no triggers that could suggest the exact reason, he added saying that even the data does not show the reason behind this surge.

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Short covering could be the reason why the markets behaved the way they did, he added. The trigger could also be from the expectations of a decision on the loan moratorium issue. The court has deferred the case till 2 November. It appears that the court is finding some difficulty in deciding one way or the other.  The apex court is taking time because both the parties have been putting a very strong argument.  

The Managing Editor said that it was about time that the profit booking happened as the markets have been on a strong rally for 9-10 trading sessions on the trot.  

This current state of the markets does not inspire for a short covering on the first indication, Singhvi said. If the market is overbought, then the investors can book profits and wait for fresh opportunities.  

His advice to the investors is to wait for the right levels to enter the markets, which the latter is giving daily. 

On Wednesday, the investors had an amazing opportunity to enter at levels around 23200 in Bank Nifty.                   

The Nifty support zone is at 11800. 

It has been six years since the markets have seen a rally for the consecutive 10 sessions. Singhvi said that Wednesday’s momentum has been the highlight of the las 10 days. This was despite the Markets opening on a weaker note. 

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He indicated that there could be some short covering in today’s session also.