Bank Nifty will be saviour for markets
Bank Nifty made markets to move up to its record high in F&O January series, when it touched a high of 21,130 on 28-01-2015 in intra-day. Since then, it has been correcting and made F&O series of February bearish, with nervousness seen from start of the series. Thanks to index management, which we see ahead of expiry, to have higher or lower close, as per the wishes of the market players. If F&O trades are securities settled, instead of cash settled, this kind of volatility will not be seen in the market..
Practically, whole market wrote off the banking stocks as also Bank Nifty, when it fell to a low of 18,300 today in ID, as also yesterday. But we kept our hopes alive on Bank Nifty (Read Futures Call section in Member Zone of today and yesterday) as we can't write off the bank stocks, that too, when rate cut from RBI is expected, of another 25 bps after budget and much ahead of its policy meet on 2nd April.
So keep a positive view on Bank Nifty for February and March F&O series and don't be surprised to see it breaching 19,800 in February series and 21,000 mark in March series.