Nifty recovery weak, risks remain

AFTER FALLING FOR nine straight sessions from September 18 to September 30, the Nifty finally regained momentum in the October series.

- IVK SHARMA

It closed the holiday-shortened week 0.97% higher at 24,894. The Bank Nifty did even better with a gain of 2.21%, while metals stole the show as the sectoral index soared 3.93%.

Yet one thing remains unchanged — FIIs’ appetite for short-selling. October opened with their highest-ever short positions at 94%. The weak rupee is both cause and effect of FIl cash-market sales. A close above 25,400 would send even battle-hardened FIls scurrying to cover. For the mild-hearted, a nudge past 25,100 may suffice to trigger a rethink. Support lies at 24,587.