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Rollover in NIFTY (66.62%) though less has been inline with three month average as last month rollover was
very low, bringing down the average. Series-to-series there is hardly any change in Nifty futures open
interest, but there is certainly change of hands which we have observed in last couple of weeks of June
series. In 20th Jun fall, lot of week hands did throw towel in the ring and squared off their long positions
voluntarily or forcefully due to margin pressure. That was bottom of the market. Ever since then, FII’s have
been huge buyers in cash market segment and Index futures too.
As market has bounced back to 5647 level Nifty spot, there is still skepticism among weaker hands and
hence they are buying significant amount of put options which has kept implied volatility at slightly higher
levels. We believe that atleast for initial part of July series we may have strong market. From options front
5800 look easily achievable. 5400 seems to be now support as it did in May series.
BANKNIFTY (66.53%) has seen less rollover in open interest as well as percentage terms indicating shorts not
rolled over. We take this as a positive sign. Fresh formation of long positions can be seen in this sector.
Banking and Financials
Most of the banking counters have seen high
rollover in comparison with last month.
Large caps like AXISBANK (74.38%), ICICIBANK
(74.90%) and SBIN (73.78%) have seen significant
unwinding of short positions. These stocks have
witnessed blend of short and long rollovers.
Few stocks like HDFC (75.49%), HDFC BANK
(82.04%), and CENTRALBANK (80.36%) and IDFC
(88.45%) added significant open interest. Barring
IDFC all these stocks have mainly long positions.
We may see further up side in these counters.
Stocks where rollover is high both in terms of open
interest and percentage are CANBK (88.82%),
PNB (86.37%), UCOBANK (94.80%) and
UNIONBANK (75.82%).
Oil and Gas
Metal & Mining
HINDALCO (85.05%) had significant short
positions and most of them got rollover. Avoid
forming fresh short. Short covering may pull up
the stock to around 200 levels.
JINDALSTEL (81.44%) added significant open
interest and most of them got rollover. Stock has
mainly long positions in it. Further positive move
around 690-700 can be expected.
Counters like HINDZINC (77.63%), JINDALSAW
(74.29%) and TATASTEEL (84.85%) have seen less
rollover of open interest and as compared to 3
month average in terms percentage as well.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Rollover in NIFTY (66.62%) though less has been inline with three month average as last month rollover was
very low, bringing down the average. Series-to-series there is hardly any change in Nifty futures open
interest, but there is certainly change of hands which we have observed in last couple of weeks of June
series. In 20th Jun fall, lot of week hands did throw towel in the ring and squared off their long positions
voluntarily or forcefully due to margin pressure. That was bottom of the market. Ever since then, FII’s have
been huge buyers in cash market segment and Index futures too.
As market has bounced back to 5647 level Nifty spot, there is still skepticism among weaker hands and
hence they are buying significant amount of put options which has kept implied volatility at slightly higher
levels. We believe that atleast for initial part of July series we may have strong market. From options front
5800 look easily achievable. 5400 seems to be now support as it did in May series.
BANKNIFTY (66.53%) has seen less rollover in open interest as well as percentage terms indicating shorts not
rolled over. We take this as a positive sign. Fresh formation of long positions can be seen in this sector.
Banking and Financials
Most of the banking counters have seen high
rollover in comparison with last month.
Large caps like AXISBANK (74.38%), ICICIBANK
(74.90%) and SBIN (73.78%) have seen significant
unwinding of short positions. These stocks have
witnessed blend of short and long rollovers.
Few stocks like HDFC (75.49%), HDFC BANK
(82.04%), and CENTRALBANK (80.36%) and IDFC
(88.45%) added significant open interest. Barring
IDFC all these stocks have mainly long positions.
We may see further up side in these counters.
Stocks where rollover is high both in terms of open
interest and percentage are CANBK (88.82%),
PNB (86.37%), UCOBANK (94.80%) and
UNIONBANK (75.82%).
Oil and Gas
RELIANCE (83.87%) has added substantial open
interest and has been underperformer of market
as well as of its sector, indicating formation of
short positions. We expect this short covering and
addition of fresh longs can take counter to 950-
960 levels. However buy near 870 levels.
ONGC (85.19%) too added meaningful OI and
has remained flat. This sector major too is buying
on dip candidate around 265 levels.
Highest rollover in this space has been observed
in CAIRN (92.60%) though stock has reduced OI.
Level of 300 is strong support for it.
Information Technology
Post results huge formation of shorts was observed
in INFY (76.64%). Counter has seen short covering
in initial part of June series followed by some
formation of longs. Counter is in middle of
multiple resistance point till 2,980. We believe
INFY may surpass them for higher levels.
Long positions have been formed in TCS
(72.60%). Level of 1,250 is strong resistance for
the counter. Don’t short even if counter shows
some correction from there.
EDUCOMP (86.11%) has been significant
underperformer. Counter has large short positions
in it. If stock manages to stay above 375-380
support zone, we may see strong bounce back.
Auto and Auto Ancillary
Auto major, TATAMOTORS (82.57%) has seen
short formations in first half of June series. Later
with consolidation, significant unwinding was
observed. We expect positive move up to 1,050
levels. However, TATAMTRDVR (92.37%) has seen
huge rollover of short positions.
M&M (76.00%) and MARUTI (86.21%) both stocks
added significant positions and rollover is also
higher than average. MARUTI still has short
positions and covering of those positions may pull
up the stock to 1,220 levels.
Few stocks like BAJAJ-AUTO (83.84%),
HEROHONDA (81.34%) and ASHOKLEY (79.56%)
have witnessed significant unwinding in last series.
Consumer Goods and FMCG
Both FMCG major ITC (80.00%) and HINDUNILVR
(85.08%) have been attracting buying interest in
uncertain market scenario as defensive stocks.
With market poised for fresh run, we believe
considerable amount of unwinding of long
positions can be witnessed in both of them
especially ITC which added fresh longs in last
series. HINDUNLVR has seen some unwinding.
Don’t form long positions in them.
RUCHISOYA (96.27%), MCLEODRUSS (94.37%)
and TATAGLOBAL (93.38%) have seen strong
rollovers in this series.
Metal & Mining
HINDALCO (85.05%) had significant short
positions and most of them got rollover. Avoid
forming fresh short. Short covering may pull up
the stock to around 200 levels.
JINDALSTEL (81.44%) added significant open
interest and most of them got rollover. Stock has
mainly long positions in it. Further positive move
around 690-700 can be expected.
Counters like HINDZINC (77.63%), JINDALSAW
(74.29%) and TATASTEEL (84.85%) have seen less
rollover of open interest and as compared to 3
month average in terms percentage as well.
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