Nifty, Bank Nifty see healthy rollovers to July series

Our Bureau Chennai | Updated on June 26, 2020

Nifty and Bank Nifty witnessed strong rollover sto July series. Nifty witnessed a rollover of 79 per cent and the Bank Nifty 81 per cent. This is on par with last month’s rollover, and better than the three-month average.

Acccording to YES Securities, the highlights of June series are: leadership driven by Reliance Industries marking life-high levels with strong build-up in open interest; comeback of laggard NBFC sector and financial space; VIX remained in the lower band at around the 30-mark throughout the series; and two consecutive months of large negative cost-of-carry for the Nifty index, making short rolls unviable.

Motilal Oswal Financial Services said that in the June series, FIIs remained net buyers in the cash segment by ₹11,644 crore, while DIIs sold equities worth ₹990 crore. On the other hand, FIIs exited their long positions and engaged in some fresh shorting in index futures. As a result, their ‘Long Short Ratio’ of index futures reached 42.43 per cent in June from 63.21 per cent in May.

“On the options front, we are seeing OI concentration at 10,500, 11,000 and 11,500 calls, while 9,000, 9,500 and 10,000 Put writers are also active. Options data suggest a position-wide trading range between 9,600 to 11,000,” it added.

Considering the overall derivatives data, we may see buying interest in index on dips to 9,900–10,000 zone. While an upmove towards 10,800–11,000 levels cannot be ruled out, Motilal Oswal said. On the stocks front, a healthy amount of long positions got rolled over to the July series in counters such as Reliance, RBL Bank, Godrej Prop, Hind Petro, Muthoot Finance, Canara Bank, and Biocon, among others. Among stocks which added shorts are Exide Industries, IGL and Pidilite Industries, Motilal Oswal said.

Published on June 26, 2020

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