I will keep it short and simple today, well, mainly because there are not enough cues to track. The market hit another all-time high on Monday though some of you may complain that your portfolio isn’t reflecting that and that’s because this rally of August has been a pretty narrow one.
The Nifty is up 5 percent, the midcap index is down 1 percent and the small cap index is down 4 percent. So the small cap index has underperformed by a good 9 percent this month but like I explained yesterday, this is largely because it had a massive rally up until July.
I am a firm believer of market rewarding those who instead of asking “kya lag raha hai?” just follow what the market has been hinting. The market is clear, it wants to keep making new high even if that’s mainly because of a set of large caps like HDFC twins, Reliance, Kotak and TCS.
So, every dip is an opportunity to buy Call options of index futures or individual large caps. This is a bull market and chances are even if one buys slightly higher, the market will bail you out.
With Thursday being a market holiday the weekly expiry gets advanced to tomorrow and the options data indicates that a move towards 16,700-16,800 is possible on the Nifty and the base has now moved up to 16,350. The Bank Nifty underperformed yesterday and will be the key index to track today.
Have a profitable day!
First Published: Aug 17, 2021 8:15 AM IST
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