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Traders roll over fewer positions in Nifty futures

About 70% positions were rolled over to the Nifty November futures, in line with average rollovers of 71% in the last three series.

, ET Bureau|
Last Updated: Oct 28, 2016, 08.09 AM IST|Original: Oct 28, 2016, 08.07 AM IST
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T  the open interest in Nifty futures on Thursday was Rs 16,200 crore compared to Rs 21,100 crore on the expiry day of the Se ptember contracts, said Edelweiss Securities in a note.
T the open interest in Nifty futures on Thursday was Rs 16,200 crore compared to Rs 21,100 crore on the expiry day of the Se ptember contracts, said Edelweiss Securities in a note.
Mumbai: Traders carried forward fewer positions in Nifty futures to the November series on Thursday -when the October contracts expired -amid caution ahead of the US Presidential elections and uncertainty over the near-term direction.

About 70% positions were rolled over to the Nifty November futures, in line with average rollovers of 71% in the last three series.

But, the open interest in Nifty futures on Thursday was Rs 16,200 crore compared to Rs 21,100 crore on the expiry day of the Se ptember contracts, said Edelweiss Securities in a note.

The cost of rolling over Nifty futures was 54-55 bps compared to 60 bps in the previous expiry.

“The roll cost was lower and aggression was not there in rollovers which suggests that we are going into the next series with a lot of caution,“ said Tushar Mahajan, head-derivatives, Nomura.

The market-wide rollovers stood at 79% compared to average rollovers of 77% in the last three series. The November series will start with market-wide futures open interest of Rs 93,600 crore versus Rs 95,700 crore at the beginning of the October series “Traders want to keep positions light because of the US elections and as many of the corporate results are yet to come out,“ said Jitendra Panda, MD, Peerless Securities.

The Fed meeting on Nov 1-2 will be watched for cues on whether it will hike rates in December. In the November series, highest open interest concentration among Nifty call options is at 9000 followed by 8900 and among puts, the highest concentration of OI is at 8500.

“OI in the Nifty has come down by about 40% since the September series, which indicates that the leverage is not high and this can limit downside in the index,“ said Amit Gupta, head of derivatives, ICICIdirect.

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