New Delhi, Sept. 21 -- Dear Reader,

Last week I wrote that the coming rally would be a unique one because it was not backed by indicators that displayed strength of buying conviction. I also noted that short covering can spark brief but intense buying sprees that often mislead traders. Which is why I suggested protective tail risk (Hacienda) hedges on long positions. Read last week's column here - https://www.livemint.com/mint-top-newsletter/ticker15092025.html

The feel-good-factor triggers I mentioned last week of US President Donald Trump sounding amicable towards India and Indian 10-year bond yields indicating calm returning to money markets, continued to play out. Markets continue to ignore the weakness in the rupee versus the US do...