Rollovers for Nifty futures turn healthy

Nifty rollovers at 72.69 per cent is above its 3-month average of 65 per cent, says an Angel Broking report.

According to it, even in terms of open interest, the rollover is on the higher side.

“Thus, we believe major chuck of the longs formed in last series has been rolled over, which suggests continuation of ongoing momentum. At current juncture, 10,500 call option is attracting traders attention; while, maximum concentration of open interest in puts is firmly placed at 10,000 strike,” Sneha Seth, Derivative Analyst, Angel Broking, said.

“October series was indeed a Diwali bonanza for our markets as the benchmark index registered a fresh record high and achieved yet another milestone of 10,350. Finally, post consolidation seen in the last two series, index gained momentum and we also witnessed decent amount of long formation in index futures segment,” she added.

Historically, there has been a trend whenever FIIs start selling in equities, markets tends to take it negatively; but, this time, history is not getting replicated. In fact, this entire selling has been completely overshadowed by the enormous and relentless buying from domestic institutions. However, FIIs did participate in the recent rally by making good amount of longs in index and stock futures last series. In addition, they also bought index call options along with writing in index puts; this clearly indicates they formed bullish bets in F&O space, she added in the note.

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