Nifty is going to become a free-float weightted index, and as a result of this, a large number of stocks would have their weight changed in the index. Stocks such as Infosys, ICICI, L&T, and RIL which have large free-float would see their weight increase in the index. Other stocks such as ONGC, Bharti, SAIL, TCS, Wipro which have a low free-float would reduce in weight.
Just as it was in Jan, I have a bearish view on the market. However, I don't think 2500 levels would be broken in the next couple of months. With elections around the corner, I don't think there would be huge movements in the market either way. A hung parliament may give the final downward push to the market, but that is still far away. In the near term, I expect the market to creep towards 2600 levels, and stay in the 2600-2700 range for some time.
On the volatility front, I think the volatility may remain low till april, and then shoot up. However, given the fragile state of the market, I would rather be long vols than short it. And at current levels, its quite attrative for longer tenors.
Just as it was in Jan, I have a bearish view on the market. However, I don't think 2500 levels would be broken in the next couple of months. With elections around the corner, I don't think there would be huge movements in the market either way. A hung parliament may give the final downward push to the market, but that is still far away. In the near term, I expect the market to creep towards 2600 levels, and stay in the 2600-2700 range for some time.
On the volatility front, I think the volatility may remain low till april, and then shoot up. However, given the fragile state of the market, I would rather be long vols than short it. And at current levels, its quite attrative for longer tenors.
