Rollovers for the July to August series on Thursday were higher than the 3-month average. Rollovers in Nifty contracts were at about 72%. This figure is about 5% higher than the previous month’s, while market-wide rollovers stood at 80%. Market-wide open interest in August series stands at R4330 crore, in line with the open interest that was seen in the beginning of the July expiry.
?Short rollovers were aggressive which resulted in the roll cost shrinking to 30-35 bps. This was primarily because of a negative market sentiment,? said Yogesh Radke, head of quantitative research, Edelweiss Securities.
On Thursday,the Nifty closed at 2.83% lower than it did in the previous expiry. ?We had seen a positive bias in the last two expiries but a short-term trend reversal is likely this time round. The market will continue to see selling pressure unless it (Nifty) reaches the 5,650 levels,? said Nandish Patel, senior derivative analyst, Sharekhan.
Sectors such as textiles, sugar, power, transport and telecom saw high rollovers, while fertiliSers, auto and capital goods saw dismal rolls.
?The auto sector has been hit by the central bank?s hike of 50 bps in policy rates which is why traders didn?t carry forward their long positions to the next series,? said Patel.
Among individual stocks, Ruchi Soya, NHPC, Bharat Forge, Godrej Industries, Pantaloon, Century Textiles, Cairn India, Jaiprakash Power Ventures, Tata Global Beverages, Balrampur Chini Mills, Reliance Capital, Renuka Sugars, India Infoline, Suzlon and Reliance Communications saw strong rolls in percentage terms. Analysts expect the market to trade in a range of 5,400 to 5,700 for the August series.
?The result season is almost over and the market has seen huge volatility on the back of corporate results and the RBI monetary policy. However, the after-effects of the central bank?s rate hike may linger for another week or two and the market will be driven mostly by global cues,? added Radke.
