The June derivative series, which expired on Thursday, witnessed quite a normal and smooth roll over. Nifty futures witnessed an average roll over of around 65-70%, while stock futures saw a roll over of around 70-73% from June to July series.
However, certain amount of short positions are being built in Nifty July futures whereas long roll overs have been witnessed in most individual stock futures, clearly indicating that investors are hedging their positions in the market.
Nifty July futures contract ended the day with a discount of 32 points to close at 4,250 points as compared to the spot Nifty close of 4,282 points. Market experts say that around 6-8 points discount witnessed in Nifty July futures is because of dividend impact.
A number of companies have announced dividend and the market is expecting few more large cap companies to declare dividends, including ONGC, which has than 9% weightage in the index.
Siddarth Bhamre, derivative analyst at Angel Stock Broking said, ?It is because of investors taking arbitrage opportunities in the index that Nifty is trading at a discount rather than a build-up of short positions. If the global markets are good and Nifty manages to move above 4,315-4,320 levels, we may witness short covering at that levels which may take Nifty further to 4,350 levels.?