With one day remaining for the expiry of August derivative contracts, the market wide rollover from August derivative series to September series picked up on Wednesday, with the same rising above 50% level. Rollover in Nifty futures too saw good momentum with nearly 55% of the total outstanding position having rolled to September series, and rollover in individual stock futures too stood at around 54%.
Nifty August futures closed at 4,363 points with a premium of 3.7 points to spot Nifty?s close of 4,359.30 points mainly on the back of short covering in the current month’s derivative series. On the other hand, Nifty September futures closed at 4,325 points with the discount remaining at a high of 35 points when compared to spot Nifty indicating that more of outstanding short positions have been rolled over to the September series.
Gurudatta Dhanokar, technical analyst and derivative strategist, Almondz Global Securities, said, ?Though the discount of 35 points in Nifty September future is high, still it has managed to come down from a high of more than 40 points witnessed during the current month series. But still the discount points out to the fact that investors are foreseeing a downside movement in the market.?
Market experts opine that though we are witnessing normal rollovers, a clear cut trend is still not emerging from the current rollovers as lot of surprise developments on both domestic and global fronts are confusing investors a lot. This has resulted in some investors taking short position while few investors have carried long position and the market is expected to trade in a range in coming days taking cue from global markets. The implied volatility (IV) of Nifty current month series is in the range of 29%-31%, which market watchers feels indicates lack of clear market direction.
Siddarth Bhamre, derivative analyst, Angel Broking, said, ?Overall, we neither see a major upside nor downside from here. But I feel that we are on the higher side and would advice the investors to hold not so heavy positions.?
Power sector stocks like REL, NTPC, and CESC Ltd are witnessing long position rollover in the market. Stocks belonging to Telecom and FMCG too are seeing good roll over with long position while banking sector stocks are witnessing mixed trend. On the other hand, IT stocks like Satyam, Infosys and Wipro continued to witness short rollover for the second consecutive month.