A look at the movement in market indices since last week suggests that the markets are euphoric. A look at some of the major indicators in the derivatives market, however, points toward some caution.
Take, for instance, the change in open interest (or outstandings in the derivatives market) during the time of expiry last week. Post expiry, the open interest dropped from Rs 10,380 crore to Rs 6720 crore day-on-day, a 35.3 per cent fall.
Not that this implies negative sentiment, because it
