The bulls, who have given a fierce fight to the bears and have made good headway after a long time, will not let loose their grip at the time of the derivative settlement and ensure handsome gains by squaring up derivatives at the highest possible rates. This bull strategy outlined in this column three weeks back was on expectation that the Sensex would correct by 500-800 points last week to help traders book profit and re-renter at lower levels to keep their positions intact and remain comfortable and derive the maximum benefit. They will now ensure that the Sensex hits 12500 and the CNX Nifty 3825 taking full advantage of those who have carried forward their short positions.
With over 1000-point intra-day volatility on the Sensex, the market has fully corrected the recent rise. After completing the consolidation of 240 points on the first three days, the market has bounced back by over 500 points in the week netting a rise of 305 points on a week-to-week basis. It was not unnerved by the Pyramid Saimira IPO scam involving broker Nirmal Kotecha because of the bullish undercurrent. Since the indices are ruling above their 200 DMA, the market will remain bullish this week.
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