New Delhi, Sept. 29 -- Last week, I wrote that the unique rally (unique because it was not supported by data) could continue, provided the Nifty manages to clear the hurdle of 25,550 levels. Read the piece here. The index failed to clear this resistance area on even one day of the week. That set the grounds for a bout of profit-taking, which evolved into selling pressure in no time.

The noteworthy aspect of last week's rally is that retail traders continue to nurse a bullish hangover. This is borne by the MTF (margin-funded trading facilitated by brokers lending money to investors) borrowing, which went up to Rs 99,577 crore (prior week Rs 96,338 crore). I have often expressed my concern about rising leverage (trading or investing with b...