Nifty futures, market-wide rollovers higher to Feb series: Axis Securities

F&O stocks Indian Bank, SAIL, Uno Minda, TCS, KEI Industries, Wipro, Patanjali Foods, Oil India, RVNL and Naukri have witnessed high rollovers, states the Axis Securities report.

The Nifty January futures have declined around 2.5 per cent as of date mirroring the fall in the benchmark indices.  However, with the Union Budget to be presented in the February series (February 1), traders' interest seems to be increasing as indicated by the rise in futures & options (F&O) rollovers.  Axis Securities in its monthly rollover report, dated January 23, highlights that the Nifty futures rollovers at 41.69 per cent are higher compared to the past 3-month (16.7 per cent) and 6-month (28.2 per cent) averages, signalling heightened trader conviction for the upcoming series.  In comparison, Nifty rollovers at the same time (2 days prior to the monthly expiry) stood at 23.87 per cent and 26.14 per cent in the preceding two monthly expiries. The Nifty January contracts expire on Tuesday, with Monday (January 26) being a trading holiday.  On similar lines, rollovers in Bank Nifty too surged to 41.4 per cent, a sharp rise from the previous 23.2 per cent and well above the 3-month and 6-month historical benchmarks of 16.5 per cent and 24.5 per cent, highlighting a strong pivot toward banking sector dominance.  Market-wide rollover too climbed to 53.4 per cent from the prior 41.7 per cent, notably exceeding the 3-month and 6-month averages of 38.0 per cent and 44.1 per cent, which reflects a broad systemic preference for maintaining market exposure, said Axis Securities in its report.  

 

 

F&O stocks/ sectors in focus

  F&O stocks such as Indian Bank, SAIL, Uno Minda, TCS, KEI Industries, Wipro, Patanjali Foods, Oil India, RVNL and Naukri have witnessed active trading interest, and higher rollover to the February series.  On the other hand, APL Apollo Tubes, ITC, ONGC, PowerGrid Corporation, Dalmia Bharat, Biocon, JSW Energy and HUDCO are seeing lower rollovers as of yesterday.  Among sectors, the report stated that strong rollovers were visible in IT, infrastructure and the auto sector.  

 

Nifty Jan Expiry cues

  Given the existing Nifty option data for the January series, Axis Securities expects a likely range of 25,000 - 25,800 for the monthly expiry.  The report highlights high concentration of open interest (OI) at the 25,000 Put, and 25,200 levels; whereas strong Call OI at the 25,500 Strike Price, followed by 25,800.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.