Muhurat session will usher in some positivity, says Geojit Financial Services

By Anand James

Rollovers have picked up, but do not seem to be large enough to suggest a hurry or an extension in the ongoing downtrend. They are at 19.25 and 23.57 for Nifty and Nifty Bank respectively, well in line with the last four months’ average. Nifty and Bank Nifty straddles are also priced in line with last expiry levels of similar periods, at 330 and 740 respectively, pointing to the absence of any exaggerated range expectations, especially given how far below Nifty’s 200-day SMA is. Volatility as indicated by VIX is only near 14, again pointing to the absence of peak fear. None of this, though, is an indication towards reversal but is suggestive of a calmer expiry. Among stock futures, while 76% saw long liquidation, 16% saw short covering, when compared to Thursday, pointing to some green shoots towards buying interest. Echoing this sentiment, FIIs, DIIs, as well as clients, were seen reducing shorts in index futures while boosting longs. The sharpest increase in longs was from FIIs, who boosted their long positions in index futures by 5% on Friday. 

Nifty leans on history to attempt a reversal from the 24k vicinity

Since the rapid declines from the September peak began there has hardly been a period that witnessed higher highs, underscoring a persistent mood to sell into strength. Such has been the bearish momentum during this period that all eyes are now on the 200-day SMA at 23372, which is about 3% from current levels. That it is taking time to head to the 200-day SMA despite 100 and 50 SMAs being broken a while ago points to the sharpness of the rise in the last 6 months. The distance between 100 and 200 SMAs is the highest since the sharp ascent during the 2020-21 period. We are now at a perfect point to correct this anomaly as we approach the August low of 23893, providing a breathing space for bulls to regroup, arrest declines and possibly affect a sideways move at least. On Friday, the slide’s sharpness got softer by the third hour, whose close was bested by last hour’s close. This is suggestive of a recovery, which will face the first challenge at 24350.

Additionally, the Muhurat session will also usher in some positivity. In the last 10 years, Nifty ended positively on 8 out of 10 Muhurat trading sessions.

 » Read More

Related Articles

Bribery allegations in GST registration spark FM Sitharaman’s response, CBIC clarifies on the matter

A social media post has again brought the spotlight on how alleged corruption continues in the tax regime and haunts people who want to expand their businesses. The post, shared by Vinod Gupta, revealed his frustration over delays in getting his Goods and Services Tax (GST) registration. He alleged in the post that after failing

India’s $4.56 billion metal exports to be hit by Trump’s tariff hike: GTRI

US President Donald Trump’s decision to double tariffs on steel and aluminium imports is set to impact India’s metal exports worth $4.56 billion, according to a report by the Global Trade Research Initiative (GTRI). The revised tariffs, which will take effect on June 4, 2025, are expected to make Indian metal products significantly more expensive

5 mutual funds that delivered the highest returns in a decade

The Indian stock market is currently going through a phase of volatility, with the Nifty 50 and BSE Sensex hovering below their record highs. After a good 2023 and 2024, midcaps and smallcaps corrected sharply. This was due to profit-booking, liquidity issues, and high PE multiples, leading investors back to largecaps. Yet, structural growth for

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Bribery allegations in GST registration spark FM Sitharaman’s response, CBIC clarifies on the matter

A social media post has again brought the spotlight on how alleged corruption continues in the tax regime and haunts people who want to expand their businesses. The post, shared by Vinod Gupta, revealed his frustration over delays in getting his Goods and Services Tax (GST) registration. He alleged in the post that after failing

India’s $4.56 billion metal exports to be hit by Trump’s tariff hike: GTRI

US President Donald Trump’s decision to double tariffs on steel and aluminium imports is set to impact India’s metal exports worth $4.56 billion, according to a report by the Global Trade Research Initiative (GTRI). The revised tariffs, which will take effect on June 4, 2025, are expected to make Indian metal products significantly more expensive

5 mutual funds that delivered the highest returns in a decade

The Indian stock market is currently going through a phase of volatility, with the Nifty 50 and BSE Sensex hovering below their record highs. After a good 2023 and 2024, midcaps and smallcaps corrected sharply. This was due to profit-booking, liquidity issues, and high PE multiples, leading investors back to largecaps. Yet, structural growth for

ITR forms and Excel utilities out, but you still can’t file income tax return online – Know why

ITR Filing AY2025-26: With almost a two-month delay, the Income Tax Department has made available two Excel-based offline utilities for ITR-1 and ITR-4, which are applicable basically to individual taxpayers with less than Rs 50 lakh annual income. Ideally, taxpayers need an ITR form applicable to them based on their income status and a corresponding

Ramdev’s Patanjali gets govt notice for suspicious fund diversion

Patanjali Ayurved, the company founded by yoga guru Ramdev, has come under fresh scrutiny from the Ministry of Corporate Affairs (MCA), which has issued a notice seeking an explanation over a series of financial transactions flagged as suspicious by federal economic intelligence agencies. A report by Bloomberg reveals that the government is probing possible fund