Nifty witnessed some minor pullback with rollover moves, but the last week's lows of 12,730 acted as a strong support to aid a sharp recovery in the second half of the session. The index closed near 13,000 on November 26.

Nifty gained 11 percent while Bank Nifty outperformed, gaining nearly 23 percent for the November F&O series.

Among sectors, metals, realty, auto and energy indices gained 26.8 percent, 13.9 percent, 11.7 percent and 11.1 percent, respectively, While IT, pharma and FMCG gained 5 percent for the November series.

The December derivatives series is 5-week long and we expect volatility to increase if India VIX crosses 23 levels on the higher side.

Investors should reallocate their portfolios to defensive sectors and hedge their portfolios doing bear spread or long put butterfly strategies as we are trading at an all-time high with sharp outperformance over the last 2 months.

The Midcap index continues to be at an inflection point and it may outperform the broader indices.