March series ended at a record high, expect optimism to continue: Angel Broking

March series is the historical one for our market as the Nifty ended the F&O expiry above 9000 mark for the first time. Despite being the eventful month (elections in four states), the March series began with healthy positions and kept on adding further open interest during the month. The rollover is low in percentage terms; while it's high in terms of OI. This is the fourth consecutive month, when Nifty ended the series on a positive note (Month on Month basis) and FIIs too participated heavily in this up move. FIIs added decent amount of long positions in index futures; however, they also added some short positions in last few sessions, which resulted into decreasing the 'Long Short Ratio' from 82.90% to 76.70%. As far as their activity in cash segment is concerned (in March series), we witnessed huge buying interest from FIIs' desk after many years. They bought equities worth more than `28,000 crores (including couple of block deals). It clearly depicts buying by stronger hands, which certainly augurs well for our market with a directional perspective. In options segment, highest OI in April series is placed at 9500 and 9200 call option; while in put option, it is placed at 9000 put option. Considering all these data points, we believe that ongoing optimism should continue in the forthcoming series too.

Rollover in BANKNIFTY is marginally lower in terms of open interest; whiles it's above its quarterly average in percentage terms. Rollover data is hinting that majority of the longs formed have been rolled too. Some Midcap PSU Banks like ORIENTBANK (81.73), BANKINDIA (81.25%) and UNIONBANK (72.56%) has seen decent rally in last series; but, their open interest data is not so encouraging. While, some NBFCs like IBULHSGFIN (86.42%), DHFL (87.33%), RELCAPITAL (81.65%), M&MFIN (76.54%) and L&TFH (81.95%) had seen decent rally in March series along with formation of long positions. The overall data of BANKNIFTY is positive and thus we may see further rally in the banking space.

Source : Equity Bulls

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