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After significant fall in August series, a moderate gain of 3.41% in NIFTY (61.19%) was big relief to the
market but within the range of 4750-5150 huge swings were witnessed. Rollover both in terms of
percentage and number of shares wise is less in Nifty; however in BANKNIFTY (76.57%) rollover has
been substantially high on both fronts. This index has not witnessed much of short covering even during
the bounces in market as well as in this index itself in the series gone by.
On the options front it can be observed from puts built up that support zone of 4700-4800 may be
intact atleast for first half of October series. Interestingly call built-up is prominent only in 5200 strike.
Also strikes above it have seen substantiall addition in OI. Starting a new series with high implied
volatility of 30.22% also supports the argument that market may see increased volatility in above range
for the first half without violating the range meaningfully
Banking and Financials
AXISBANK (85.12%) has seen significant addition
in open interest plus rollovers are on the higher
side. It’s more of short positions which got rolled
over. 1000-1020 is good support which should be
strict stop loss for long positions.
Among large caps, ICICIBANK’s (71.74%) OI has
decline and rollover has been less too. Counter
has strong support 820-830 levels and this stock in
large cap banks is buy on dips candidate for us.
Both IDBI (83.40%) and IDFC (81.24%) observed
short covering in fag end of series near their
support levels. Counters remain in consolidation
range and are on the lower side of range. Trade
with positive bias in them.
Metal & Mining
Sector overall was underperformer with large cap
names like TATASTEEL (84.27%), STER (78.76%)
and HINDALCO (87.32%) adding short positions
with fall in price and depicted strong rollovers too.
They remain in sell on rise category for us.
Rollover in SAIL (79.21%) has been less and stock
has been consolidating in the range of 102-115.
Counter can be bought near the lower side of
range as we are not expecting fresh shorting in it.
Lowest rollover in sector was observed in
JINDALSTEL (75.83%) with reduction in OI. We
don’t expect meaningful upside in it and is a good
shorting candidate around 540-550 levels.
Oil & Gas
Among large caps in this space ONGC (85.04%)
is only stock which added significant OI; thanks to
FPO talks. Whether disinvestment happens or not
this counter may stuck in broader range of 250-
290. Trade accordingly.
RELIANCE (77.46%) has witnessed short covering
rally and rollover too are on lesser side. 850-860
is strong resistance and counter may not breach it
in near future.
Rollover in IOC (87.07%) was in line with average
but there was substantial decline in OI. Stock is
near strong support zone of 300-310. Trade with
positive bias in it.
Information Technology
TECHM (85.58%), ROLTA (83.48%) and MPHASIS
(83.75%) are counters in the sector which have
seen huge addition of short positions and which
got rolled over too.
INFY (64.96%) was the biggest outperformer in
large cap in last series but has drastically reduced
its open interest. We believe shorts have been cutdown.
Stock may not perform the same way in this
series as fresh shorting may limit the upside.
FSL (94.40%), 3IINFOTECH (93.19%) and
HEXAWARE (90.50%) have depicted maximum
rollover in this space.
FMCG
ITC (57.35%) has seen very low rollover. Counter
had positions blend of shorts and longs in it. There
may not be significant move in the counter but it
may touch its strong resistance of 210.
HINDUNILVR (75.85%) though has seen decent
rollover in percentage terms but in absolute OI
terms there has been very less rolls. We believe
defensive bets are off. Trade with negative bias in
it.
Lot of short positions got rolled over in
MCDOWELL-N (90.46%). 740-760 is strong
support zone. Short covering likely to happen
there.
Auto & Auto Ancillaries
Interestingly most interest rate sensitive stocks in
this space like ASHOKLEY (84.28%), M&M
(71.51%) and TATAMOTORS (82.34%) have
added good open interest and have outperformed
market.
HEROMOTOCO (63.89%) among liquid names
have depicted lowest rollover and there has been
significant unwinding in it. Counter may not depict
its defensive traits in this series.
ESCORTS (92.25%) have seen strong rollover and
is been inching up from 70 odd levels with high
volumes. Traders and investors should not ignore
this counter.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
After significant fall in August series, a moderate gain of 3.41% in NIFTY (61.19%) was big relief to the
market but within the range of 4750-5150 huge swings were witnessed. Rollover both in terms of
percentage and number of shares wise is less in Nifty; however in BANKNIFTY (76.57%) rollover has
been substantially high on both fronts. This index has not witnessed much of short covering even during
the bounces in market as well as in this index itself in the series gone by.
On the options front it can be observed from puts built up that support zone of 4700-4800 may be
intact atleast for first half of October series. Interestingly call built-up is prominent only in 5200 strike.
Also strikes above it have seen substantiall addition in OI. Starting a new series with high implied
volatility of 30.22% also supports the argument that market may see increased volatility in above range
for the first half without violating the range meaningfully
Banking and Financials
AXISBANK (85.12%) has seen significant addition
in open interest plus rollovers are on the higher
side. It’s more of short positions which got rolled
over. 1000-1020 is good support which should be
strict stop loss for long positions.
Among large caps, ICICIBANK’s (71.74%) OI has
decline and rollover has been less too. Counter
has strong support 820-830 levels and this stock in
large cap banks is buy on dips candidate for us.
Both IDBI (83.40%) and IDFC (81.24%) observed
short covering in fag end of series near their
support levels. Counters remain in consolidation
range and are on the lower side of range. Trade
with positive bias in them.
Metal & Mining
Sector overall was underperformer with large cap
names like TATASTEEL (84.27%), STER (78.76%)
and HINDALCO (87.32%) adding short positions
with fall in price and depicted strong rollovers too.
They remain in sell on rise category for us.
Rollover in SAIL (79.21%) has been less and stock
has been consolidating in the range of 102-115.
Counter can be bought near the lower side of
range as we are not expecting fresh shorting in it.
Lowest rollover in sector was observed in
JINDALSTEL (75.83%) with reduction in OI. We
don’t expect meaningful upside in it and is a good
shorting candidate around 540-550 levels.
Oil & Gas
Among large caps in this space ONGC (85.04%)
is only stock which added significant OI; thanks to
FPO talks. Whether disinvestment happens or not
this counter may stuck in broader range of 250-
290. Trade accordingly.
RELIANCE (77.46%) has witnessed short covering
rally and rollover too are on lesser side. 850-860
is strong resistance and counter may not breach it
in near future.
Rollover in IOC (87.07%) was in line with average
but there was substantial decline in OI. Stock is
near strong support zone of 300-310. Trade with
positive bias in it.
Information Technology
TECHM (85.58%), ROLTA (83.48%) and MPHASIS
(83.75%) are counters in the sector which have
seen huge addition of short positions and which
got rolled over too.
INFY (64.96%) was the biggest outperformer in
large cap in last series but has drastically reduced
its open interest. We believe shorts have been cutdown.
Stock may not perform the same way in this
series as fresh shorting may limit the upside.
FSL (94.40%), 3IINFOTECH (93.19%) and
HEXAWARE (90.50%) have depicted maximum
rollover in this space.
FMCG
ITC (57.35%) has seen very low rollover. Counter
had positions blend of shorts and longs in it. There
may not be significant move in the counter but it
may touch its strong resistance of 210.
HINDUNILVR (75.85%) though has seen decent
rollover in percentage terms but in absolute OI
terms there has been very less rolls. We believe
defensive bets are off. Trade with negative bias in
it.
Lot of short positions got rolled over in
MCDOWELL-N (90.46%). 740-760 is strong
support zone. Short covering likely to happen
there.
Auto & Auto Ancillaries
Interestingly most interest rate sensitive stocks in
this space like ASHOKLEY (84.28%), M&M
(71.51%) and TATAMOTORS (82.34%) have
added good open interest and have outperformed
market.
HEROMOTOCO (63.89%) among liquid names
have depicted lowest rollover and there has been
significant unwinding in it. Counter may not depict
its defensive traits in this series.
ESCORTS (92.25%) have seen strong rollover and
is been inching up from 70 odd levels with high
volumes. Traders and investors should not ignore
this counter.
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