Markets snap two consecutive winning streaks amid board profit booking weighed in

On the weekly charts, the Nifty has formed a bearish dark cloud cover candlestick, indicating a possibility of a continued profit booking.

Oct 22, 2021 03:10 IST India Infoline News Service

Markets finally took a breather ending its winning streak for the two consecutive weeks, to close in the red as across the board profit booking weighed in. The index Option gamma writers ran for cover as the India Vix index saw a sharp downtick.  Nifty index underperformed the Bank Nifty index by ~3.5% on account of an unwinding of long positions, to close the week in the red.

On the weekly charts, the Nifty has formed a bearish dark cloud cover candlestick, indicating a possibility of a continued profit booking. Banking stocks like ICICI Bank, Kotak Bank & HDFC Bank were among the top outperformers, witnessing an addition of long positions.

FIIs index futures long/short ratio for October hovered around 2x level in the favour of the bulls.

On the options front (October 29, 2021 expiry), the Nifty 18500CE strike price has witnessed fresh writing, hinting at a formation of a ceiling level for the index around the mentioned strikes in the coming days.

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