Steep sell-off in Adani group stocks led Nifty index to settle 287 points lower at 17604 levels.
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Steep sell-off in Adani group stocks after a report by Hindenburg Research accused the former for stock manipulation and accounting fraud scheme led Nifty index to settle 287 points lower at 17604 levels.
Broader markets too witnessed the heat, Mid & Small cap index were down 1.6% each, leading to extremely weak market breadth.
Majority of sector gauges tracked at NSE settled in red, Oil & Gas, Metal, Bankex lost maximum, down in range 3 to 5.5% while Auto index was at the top of the tally as it gained over 1%.
We expect volatility of continue ahead as well, Adani group stocks will gain stem on Monday along side with banking stocks. In adding to this, Finance Minister will table Union Budget on 1st February.
Derivatives Overview & Outlook
On Friday, both Nifty & Banknifty futures added around 13% & 29% of open interest respectively as short buildup.
All F&O sectors settled lower. Amongst them, Banking, Auto, Capital Goods and Metal stocks witnessed maximum addition of short positions.
On options front, call writing was seen at multiple strikes and maximum positions are at 17000 PE and 19000 CE closely followed by 18500 CE.
FII & DII Trading Activity
Last week, FIIs sold stocks worth Rs 6124 Cr in the cash segment, bought stocks futures worth Rs 1645 Cr and sold index futures worth Rs 5355 Cr. DIIs were net buyers in the cash segment to the tune of Rs 7210 Cr during the week.
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