Derivatives strategies: Nifty could see violent swings

The Nifty has run to recent highs above 11,700 after it broke out beyond 11,000 a month ago

Devangshu Datta 

The Nifty continues to test resistance close to its all-time highs, with accompanying signs of nervousness. We are now into the results season and there is a long-drawn-out election campaign. In addition, there are holidays in this settlement.

There could be violent swings as a result, particularly if there’s sensitive news on holidays. The rupee has started to swing. This is often a precursor to wavering FPI commitments though FPIs are heavily net-positive in equity at the moment (while selling rupee debt). Macro-data has been disappointing and GDP growth estimates have been ...

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First Published: Tue, April 16 2019. 01:24 IST