The expiry day sell off really crushed the hopes of any budget rally. Apart from hopes the breadth of the market was also dashed. The chart above is for March series, showing that a huge majority of stocks that are traded under the March expiry date are closer to their lower end of trading band.
Its too early to comment on where this series will go as it is a long and very eventful one. But surely the back of the bull has been broken and it will take some time for confidence to come back. The expiry day selling shows that there is hardly any long rollover, the bulls can at max hope for some consolidation and confidence building.
The pessimism in the market will surely not allow steep fall easily, so expect sideways movement between 5180 and 5500 for some more time.
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