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Rollovers of Nifty futures’ open positions to May series, tumbled sharply lower to 60 per cent as against the three-month average of about 77 per cent, as investors preferred to remain on wait-and-watch mode. Similarly, Bank Nifty saw a rollover of just 66 per cent against 79 per cent.
According to analysts, traders preferred to allow some long positions expire, due to intensifying pandemic situation. However, April month belongs to metal stocks that propelled Metal Index by over 30 per cent.
Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Financial Services, said Nifty settled the April series with gains of 3.98 per cent at 14,894 compare to March close of 14,324 levels. It traded the series in broader range of 14,151 to 15,044 marks and covered the entire trading range of the series in just last six trading sessions. It was in consolidation range with limited upside as well as downside for most part of the series and it is up by around 3.86 per cent in this expiry week.
“Major trend of the market is positive to range bound and we noticed that every meaningful decline was being bought in the market,” he added.
FII action in cash market has been slightly on the negative side as they were net sellers in the cash market to the tune of ₹8,574 crore. On the derivative front, also, they have been constantly increasing long exposure in Index Futures, they continue to be net long in index futures with 52,927 contracts and simultaneously client are net short in index futures with 6,432 contracts, said broking firm Sharekhan.
“FIIs have rolled over more longs compared to shorts in index futures, they have rolled over 77 per cent of index long while only 43 per cent on index short in the next series with long to short ratio quite healthy at 3.56,” it added.
On the options front, 14,000 strike put option is highest in open interest with 39,956 contracts followed by 13,500 PE with 30,135 contracts. While on the call side, 15,000 CE is highest in terms of open interest with 26,618 contracts followed by 15,500 strike with 17,428 contracts.
“Since, it is the beginning of new series, option data is scattered at different strikes. On option front, Maximum Put OI is at 14,000 followed by 13,500 strike while maximum Call OI is at 15,000 followed by 15,500 strike. Option data suggests a wider trading range in between 14,500 to 15,500 zones,” said Taparia.
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