September 2013 Rollover Report - Angel Broking

Though NIFTY (64.89%) has closed almost 10% up in September series, there is too much of pessimism in markets. We believe market may continue to feed on this pessimism. There is lot of difference in kind of open interest especially by FII's. Last series they started with short positions in index but for October it's more of long positions formed throughout the series which got rolled over.

BANKNIFTY (59.55%) has seen very less rollovers both in terms of open interest as well as percentage. With so much of negativity in the sector and more of short rolls seen here, we may not see major out performance by this sector.

With stronger hands of markets rolling good amount of long positions in index and various liquidity parameters suggesting that more liquidity is its way, for us, this market becomes buy on dips atleast for first half of new series.

ICICIBANK (54.54%) has seen least rollover in this space. Though short covering cushion has gone for the counter, Rs. 900-920/- is good support where one may contemplate to form some long positions.

BANKINDIA (70.03%) is starting new series at almost half the open interest of last series. Stock has taken support at lower levels of Rs. 135-140/- and bounced with some formation of long positions and from Rs. 190/- levels it corrected with formation of shorts. Rs. 160-165/- is good range to go long in this counter.

Financial stocks like IFCI (89.91%), IDBI (86.73%) and LICHSGFIN (83.81%) saw relatively higher rollover in percentage terms.

ITC (67.90%) though has seen least rollover in the sector; it is starting new series at slight higher open interest than last series despite having less open interest throughout the series of September if compared to last one. Stock may trade in the range of Rs. 325-370/-, trade accordingly.

HINDUNILVR (78.90%) is showing high rolls in percentage terms but in absolute open interest terms, it is starting new series on very light open interest.

JUBLFOOD (92.86%), MCDOWELL-N (92.36%) and TITAN (90.96%) has seen high rollovers in percentage terms in this space.

INFY (72.49%) has seen some reduction in open interest with some fall in prices indicating that long unwinding has kept pressure on the stock. With rupee bouncing from lower levels against dollar and if markets remains at higher levels, more unwinding of longs and now fresh formation of shorts may happen in it. Avoid for formation long. Short in the range of Rs. 3050-3100/-.

TECHM (85.64%) has seen some formation of short positions and have seen decent rollovers too. We remain bit cautious on this name. Immediate resistance is around Rs. 1360/-.

WIPRO (65.80%) and HEXAWARE (62.03%) have shown less rollover. We believe its less of long rolls which have taken place.

TATAMTRDVR (92.20%) has seen highest rollover in this space. Short covering cushion is more or less gone. Around Rs. 175/- levels, stock has strong resistance. Squaring off longs in this will be our recommendation.

Interestingly auto ancillary counters like EXIDEIND (75.62%) and APOLLOTYRE (80.82%) have seen formation of long positions.

ASHOKLEY (82.44%) has been rank outperformer in this space and have seen strong rollovers of long positions. Also in cash market segment it has come up on strong volumes. Don't short this counter with view of CV's not doing well.

From positional perspective TATASTEEL (70.38%) has strong resistance around Rs. 315-320/- and support is around Rs. 265-270/- zone. Trade accordingly.

JINDALSTEL (74.19%) is the only stock in this space which has closed in red in last series. Rs. 215-220/- is support zone for the counter, stock may move towards it.

JSWSTEEL (92.37%) has seen least reduction in open interest among large caps in this space, has been highest price gainer with highest rollover. Stock may be volatile initially but shorting is not advisable.

BHEL (77.14%) has seen huge formation of long positions and has been one of the super performer in large caps. It has come again near to its resistance level of Rs. 150/-. However kind of long positions and cash base volumes on which stock has come up, we are not suggesting to short around resistance this time.

Stocks like IRB (89.16%), CROMPGREAV (84.93%) and GMRINFRA (83.30%) has seen decent rollovers and are seeing trader's attention coming back into them. We would suggest that as market is more dependent on FII's money, avoiding high flier midcaps should be the strategy.

Source : Equity Bulls

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