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Nifty futures witnessed hectic rollover to June month series, as Nifty regained the psychological 8,000 mark. Rollovers from both Nifty as well as market-wide perspective have been on the higher side.
According to analysts, this is a positive, as most of the rollovers were on the long side. Nifty 50 saw a rollover of 72 per cent against the average of 67-68 per cent in the last three months.
Sharp fall unlikely “The market has been on the recovery mode since the Budget in February. The Nifty 50 index has made new highs every month since then, signalling that the rally is here to stay,” said Ramesh Chordia, an independent analyst based in Chennai. Healthy rollover and unwinding in short-call options indicate that the market may not fall sharply any time soon, said an analyst with a Mumbai-based brokerage firm.
The Nifty June futures closed at 8,069.65 on par with the underlying index. But if one adjusts the dividend payout of Nifty 50 companies, this may translate into a premium of about 40 points, said the analyst.
Market-wide rollovers stood at 82 per cent, which is higher than the average previous three-month figure of 77-78 per cent.
Bank Nifty follows suit Bank Nifty also saw strong rollover. Against the three-month average of 65 per cent, Bank Nifty witnessed a rollover of 70 banks to June series, signalling buying interest. Among the single-stock futures, Aurobindo Pharma, Adani Ports, Bharat Electronics, Bharat Forge, Divi’s Laboratories, Glenmark Pharma, Indiabulls Housing Finance, HPCL, IDFC, India Cements and Jain Irrigation are some of the counters that saw rollovers in excess of 90 per cent.
VIX near 2016 low India VIX on Friday slipped to 15.33 – the lowest level in the last five months. After January 1, the fear gauge has never closed below 16.
After remaining at elevated levels in the last five months, the fear gauge has been showing signs of weakness only in the last couple of days, said Ramesh Chordia.
“This means, the Nifty 50 index is poised for a rally,” he added.
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