New Delhi, Nov. 2 -- Dear reader,

Last week, I wrote that traders would be preoccupied with expiry and rollover activities. I also suggested that the markets could open on an optimistic note but would require active buying support in the second half to maintain momentum. Read here. That hypothesis was validated by the price action as headline indices slipped on Thursday and Friday.

My concerns about the above-average speculative buying in bullion (particularly silver) ETFs, which also led to some nervousness in other asset classes, were validated. Even though the price erosion in the underlying asset (silver) was relatively minuscule, the discount in ETFs compared to MCX futures stayed elevated and kept bulls under pressure. Margin-fund...