F&O Talk: Long-Short Ratio Weakens As Nifty Slips Below Key Moving Averages

Indian equities faced a sharp decline this week, with benchmark indices Nifty and Sensex closing lower. Technical indicators showed weakness as Nifty fell below key moving averages, triggering concerns among traders. The long-short ratio, a measure of market positioning, weakened further, reflecting bearish sentiment.  

Market expert Sudeep Shah pointed out notable stock movements, including Tejas Networks and UPL, alongside four other weekly movers that shaped trading dynamics. While IT and auto sectors led declines, PSU banks provided some resilience, outperforming in an otherwise volatile environment.  

Key Highlights  

• Nifty slipped below key moving averages, signaling technical weakness  
• Long-short ratio weakened, reflecting bearish positioning  
• IT and auto sectors dragged indices lower  
• PSU banks outperformed amid broad-based selling  
• Tejas Networks, UPL, and four other stocks identified as top weekly movers  

Market Analysis  
Analysts caution that volatility may persist into March, with global uncertainties and AI-related concerns weighing on investor sentiment. Traders are advised to monitor sectoral trends closely, as defensive plays like PSU banks may continue to provide relative strength. The weakening long-short ratio suggests cautious positioning among institutional investors.  

Sources: The Economic Times, News Air Insight