It has the distance from the previous highs which at 8200 never lasted for more than day or two on the indices. Given that the market may avoid big moves for now, it could take anytime between today and next Wednesday for a big correction as the futures indices plough forward without move in the underlying.
The PCR however is more than ready to keel over at the other extreme at 1.25 levels after starting up from a extreme value below 0.9. Apparently ( secondary off the shoulders from the TV behind me!) 600 points have run up on the Nifty (Udayan, morning show with LV on CNBC India ) .
The other mitigating factor on the correction however is the Rupee which gets stronger after Europe joins the QE buzz and we definitely trade much more with the Euro countries, and the Rupee Dollar could yet stay at 61 levels because of the stronger Dollar taking away any direct appreciation in the currency.
The bond markets in India are in demand however and the Currency will claw back a few points as investors double down on India debt and Private businesses like Pharma and old hobby horses in Private banks and infrastructure keep adding equity on tap.
The 8350 mark (8338 in closing yesterday would thus hold if corrections were indeed swift enough ( within November futures , 27 November being series expiry) I guess institutions would now seriously consider adding next and two month ahead series for bullish Put sells to lock in the future upmove and exit this trading range at maximum profit to a net short on the indices.
In line with comments from other hopefuls, I’d love it if the market draws all the way down to 8000 levels, after all its tiring to have to keep telling others they are not so good after all, which seems to be explicitly required in every leg of this rally segment