Markets enter profit-booking phase

The October series has been a good one and in the final day of the series, we did see the Nifty fighting back from day’s low and are now setting ourselves for the new month ie. November.

- Motilal Oswal Team

At the start of the October month, we made a point that market appears to be at over sold position and when we do see over sold position we see a bit of a bounce and that’s the way it has played out because the Nifty and the Nifty Bank have seen a very good series with gains of 5.50%-6.50% each.

The point that we made on over sold positions, the FIIs net short position in percentage terms was around 94%, the highest that we had seen at the start of any series has come down to around 74% so we have seen a massive short covering bouncing and this series has been a very good one.