Market’s bull run may stay, ‘too strong’ derivatives data a concern

Mumbai, Nov 28 : The bull run in the equity market is likely to continue in days ahead, but the only concern at this point is the “too strong” derivatives data, which may lead to a rapid sell-off in case of a course reversal, according to a report by Motilal Oswal Retail Research.
The report said that at current juncture, market is in bulls grip and dips are getting bought into quickly. Nifty’s derivatives data is also positive and it indicates continuation in ongoing momentum.
It however said FIIs index futures data signifies they are overbought in Indian market and any unwinding of longs or fresh shorting may lead to a correction in the market.
Thus, some cautious approach should be adopted at these levels it said.
“As far as levels are concern, index is moving in uncharted territory and 13,500 would a hurdle as per options data. On the flipside, major support exists at 12,700 then 12,350 zones. The only concern at current juncture is too strong derivatives data and in case of any reversal, the sell-off can be fast,” said the report.
It was a historic month for the market as Nifty posted highest ever series on series gains (in absolute term). Bulls were aggressive from the start of the November series and kept the ball in their court throughout the series, said the report.