Long Rollovers hints extension of ongoing move: Angel Broking

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

"It was indeed a good start for the financial year 2018-2019, as we saw a smart recovery post last two series correction. The benchmark Nifty rallied near about 5% with decent long formation in futures segment. Rollovers in Nifty shot up to 72.32% for April series, which is above the 3-month average of 68%. Similarly, for BankNifty also stood on the higher side at 82.59%. This certainly hints positive sentiments ahead of the Karnataka Legislative Assembly election, to be slated in the mid of May series.

In the series gone by, FIIs chose to participate in the recent rally as there added good amount of long positions in index and as well as in stock futures segment. In fact, their index futures 'Long Short Ratio' climbed higher to reclaim 50% from 18% seen in the initial days of April series. At the same time, they sold equities to the tune of Rs. 8476 crores last month. Now, we are heading into the new series with INDIAVIX below 12%, this is again an indication of some strength. Meanwhile, the options activity too points out the trading range shifting higher as the maximum concentration of OI is now placed at 11000 followed by 10800 call strike and in case of put options, is visible in 10500 followed by 10400 strike. Considering the above data point, we may see a bit of extension of the ongoing momentum in the near term."

Source : Equity Bulls

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