The broader market is heading for a consecutive downfall if the global cues are continue in the same direction and the uncertainty our market continues. Most of the scrips are coming down to a great level and further downfall will make all the blue chip scrips are most attractive to invest for long term in equity market. As far as the bank Nifty is concerned, it continues to perform an intraday swing and give profits in both directions. The players in bank Nifty are daily either making money or loosing money.The option segment is getting the erosion in its time value and most of the stocks come to its out of money options. Normally this will happen only in the fourth week of the contract series in the month, but this time it is little early,this clearly indicates that there is a huge fall in equity market.
The MAT factor played a major role in the recent fall in the market, even the MAT is not clearly understood,the broader market will continue to fall due to its profit making and fear.
If you are in equity segment you are in danger, so make suitable hedging adjustments. If you are in option segment, try to make use of out of money option to compensate your losses in trading, if any.
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