The rollover report of July-August 2011 : Angel Broking

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NIFTY futures (71.90%) have witnessed substantially more than average rollover but its open interest monthon-
month has gone down. BANKNIFTY (67.45%) has seen muted rollover. MINIFTY (73.50%) is the only
index to show above average rollover by adding open interest. CNXIT (37.94%) though not a very liquid
underlying has witnessed poor rollover with significant decline in open interest.
In recent correction from 5700+ levels due to 50 basis hike in interest rate by RBI, interestingly FIIs have not
sold in cash market segment. However they have created meaningful short positions in stock futures. We
believe globally the uncertainty level has increased and hence FIIs may not have sold in cash due to lack of
alternate opportunity. After important events unfolding in 1st week of August series, we may see them
coming back into action; buy or sell depending on the outcome of the events.
From options front one can easily interpret that range for the market has shifted down. 5400 is now new
support instead of 5500 and resistance has come down to 5700 levels as of now. The probability of this
range shifting further down within August series is quite high.



Banking and Financials
 AXISBANK (67.46%) has witnessed lowest rollover
in this space along with huge reduction in OI.
Medium term shorts formed in month of April and
May have not got rolled over. Counter may be a
outperformed in its sector.
 HDFC (79.09%) seems to have added short
positions. OI and rollovers both are strong. Any
pull back to 710-715 levels should be use to go
short.
 Many midcap banks have added significant OI in
last series with downward pressure on prices, viz.
BANKINDIA (82.01%), DCB (85.45%),
DENABANK (80.90%), UNIONBANK (79.25%),
etc.
Oil and Gas

 RELIANCE (83.92%) has added huge short

positions. Stock is in strong support zone of 820-

840. We believe this support level may be

challenged in this series. Till then covered call

writing with stop of 790 is advisable.

 Midcap gas stocks were outperformer in last series

but are depicting mixed trends in rollover viz.

PETRONET (53.01%), IGL (75.98%) and GSPL

(79.17%).

 IOC (92.88%) has added significant open interest

with fall in prices and rollover was also high. Look

for short covering bounce between the support

zone of 300-310.

Auto and Auto Ancillary

 TATAMOTORS (87.28%) witnessed mainly short

rollover in Aug series. It saw significant correction,

but could not breach its important support of 925-

935. We may see some bounceback from support

levels but formation of longs are not advisable.

 M&M (74.07%) witnessed mainly short covering.

We may see some shorting in it. Trading with

negative bias is advisable.

 HEROHONDA (63.70%) witnessed less rollover

both in terms of open interest and percentage.

Stock has strong resistance around 1860-1870

levels. We suggest move out of long positions.

Information Technology

 After disappointing result, INFY (77.04%)

accumulated significant short positions. Stock has

strong support of 2700. Avoid forming long

positions as of now.

 WIPRO (78.46%) has significant short positions

and is trading at strong support levels. We may

see a short covering up to 420-425 levels.

 In this sector, TECHM (76.24%) and PATNI

(80.49%) have seen significant unwinding over a

month.

 Mid caps like EDUCOMP (89.84%), MPHASIS

(90.36%), ROLTA (77.52%) and MOSERBAER

(86.97%) added significant open interest.

Consumer Goods and FMCG

 Uncertainty has again creped into the market so

now don’t expect meaningful fall in FMCG majors

ITC (72.80%) and HINDUNILVR (82.71%). Buy on

dips around 195 and 310 respectively.

 Despite significant run-up from 90 odd levels in

TATAGLOBAL (93.90%), we are witnessing high

rollover and formation of long positions. Stock

seems to be heading towards 123-125 levels.

 ASIANPAINT (60.16%) though not very liquid has

seen huge unwinding and very less rollover. 3050

is crucial support for the stock.

Metal & Mining
 SAIL (86.50%) and NATIONALUM (87.96%)
added significant short positions and most of them
got rollover. Stocks continued to form new low.
 TATASTEEL (88.00%) is consolidating around
current levels since quite some time. We do not
expect major change in the counter.
 The 165 level is a very strong support for
HINDALCO (86.64%). Huge short positions got
rollover in it. Buy on dips strategy can be adopted
for the target of 180-185 levels.
 In this space, HINDZINC (68.09%) witnessed very
less rollover. On the other hand, SESAGOA
(85.21%) witnessed high rollover.