Strong Rollovers for the rate sensitive index: Angel Broking

Views of Ms. Sneha Seth (Derivative Analyst, Angel Broking):

"Post some consolidation in the inceptive week of January series, the benchmark index extended its gains to register yet another milestone of 11000 mark. The journey from 10800 to 11100 was indeed the effortless one; this was mainly supported by the mesmerizing rally seen across the IT and Banking space. During the series, we saw good amount of long formation in index futures and we believe decent amount of these positions are still intact. Rollover in Nifty is at 66%, in line with three month average; whereas, in case of BankNifty is on the higher side at 71%.

During the last series, we witnessed good amount of short formation in index futures from FIIs desk; but in line to their last one year trend they refrained from rolling their short positions. Now, their index futures 'Long Short Ratio' stands at 80%; suggesting majority of their positions are on long side. After relentless selling for the five consecutive months, stronger hands were net buyers in cash segment to the tune of Rs. 9518 crores. As far as options activities are concerned, build-up is scattered between 11100-12000 call and 10500-11000 put options. Considering the above data points, we would advise traders avoiding any bearish bets unless we see any relevant signs of profit booking."

Source : Equity Bulls

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