Rollover report Nov-Dec 2010: Angel Broking

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Nifty Rollover (75.04%) has been on the higher side in percentage terms; however, absolute
open interest was almost the same. Build up has been observed mainly in the second half of
November series, along with correction in the market, which indicates shorting has taken
place in Nifty futures. Banknifty (75.40%) has seen healthy rollover in percentage terms, but a
decline in open interest is indicating more of long unwinding in this space.

Observations throughout the month indicate that FIIs, who were forming put hedge in the last
month, changed their strategy and are now forming shorts in Index futures along with selling
in the cash market. Further, they are buying Index call options to hedge their short positions.

Unlike October series, where long formations were witnessed, unwinding has been observed
in most of the stock futures in November series.

Banking and Financials


 Most of the banking stocks shed significant open
interest. More weakness can be witnessed due to
further long unwinding in this space.
 Heavy weight of the sector, SBIN (80.14%),
witnessed short formations. Rollover is also high in
terms of percentage and absolute open interest.
Further correction to ~2,700 levels is likely.
 Few mid caps like ANDHRABANK (75.14%), ALBK
(74.57%) and KOTAKBANK (69.03%) may be the
underperformers.
 Some large-cap private banks like ICICIBANK
(74.78), HDFC (66.12) and HDFCBANK (73.30)
outperformed the market.

Oil and Gas

 OMCs continued to be the underperformers in the
market. IOC (78.22) witnessed less rollover in
percentage as well as absolute terms.
 A blend of long unwinding and some shorting was
witnessed in ONGC (78.93%). The stock is trading
around its support levels.
 Despite correction in the market, GAIL (71.54%)
was consolidating in a narrow range. This suggests
strength in the stock. Avoid shorting.
 RELIANCE (88.30) rollover is higher than the
average of 82.54%.

Metal and Mining

 TATASTEEL (87.51%) has been consolidating in
November series and 570–580 is a strong support
zone. Any dips to these levels can be used to buy.
 JINDALSAW (85.46) closed around its strong
support of 180 levels. Fresh buying can be seen in
the stock.
 Few stocks where rollover is high are HINDZINC
(74.01), NATIONALUM (89.68%) and SESAGOA
(91.97%).

Auto and Auto Ancillary

 Despite correction in the market, most of the stocks
were positive in the sector.
 M&M (64.45%) outperformed the market on the
back of short covering. Rollover is also less. Avoid
positional longs in it.
 ASHOKLEY (78.30%) rollover is less both ways in
percentage and open interest terms. The stock may
be an underperformer in the sector.
 APOLLOTYRE (84.48%) has a strong support zone
at around 60–62 levels. Short positions are
standing in it. Buy on dips can be the strategy.

Information Technology

 WIPRO (76.62%) is trading around its strong
support zone of 390–400 levels. In the second half
of the month, some unwinding was witnessed
instead of shorting. Positional trades can form long
positions.
 INFOSYSTCH (78.27%) was consolidating in a
narrow range and was the only gainer in this
space.
 Mid-caps like FSL (86.29) and MOSERBAER
(88.56%) corrected due to short formation. Some
unwinding of short positions was observed in
POLARIS (82.38%).

Infrastructure

 Again a big underperformer, the sector has
witnessed significant shorting in most of the stocks.
None of the stocks is in green in this space.
 HCC (92.60%) has significant short positions and
most of the shorts got rolled over.
 RELINFRA (92.64%) has gone below its major
support zone of 980–1000 levels.
 Few mid-caps like IVRCLINFRA (82.22%),
GMRINFRA (90.70%) and JPASSOCIAT (82.36%)
have witnessed shorting in the first half of the
month.