The rollover of Nifty futures contracts from the August series to the September series was 81 per cent, among the highest in recent times, despite high cost of carry.
The average rollover for Nifty contracts for the previous three months was 67 per cent. The market-wide rollover stood at 81 per cent, in line with previous months.
Rollover is the outstanding contracts in the new series (September in this case) as a percentage of total outstanding contracts. High rollover figure to the next series are considered a bullish sign.
Also, the total open interest at the start of the September series is Rs 1 lakh crore, compared to the previous month’s average of Rs 80,000 crore.
“The long rollover cost was high at up to 75 basis points (bps) compared to 60 bps normally, and despite this Nifty traders rolled over their positions. Open interest, too, at the start of a new series is high. The obvious inference is people are bullish,” said Yogesh Radke, head of quantitative research at Edelweiss Capital.
The Nifty moved in a tight 200-point (2.5 per cent) band between 8,520 and 8,720 in the August series.
Radke said markets have been consolidating following a rally in July and a big impact will only come if they breakout from the range they traded in August.
Experts said market direction will be guided by signals from the US Federal Reserve and the new Reserve Bank of India (RBI) governor.
The Nifty 50 index on Thursday closed at 8,592, down 58 points, or 0.7 per cent, amid weak global markets.
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The average rollover for Nifty contracts for the previous three months was 67 per cent. The market-wide rollover stood at 81 per cent, in line with previous months.
Rollover is the outstanding contracts in the new series (September in this case) as a percentage of total outstanding contracts. High rollover figure to the next series are considered a bullish sign.
Also, the total open interest at the start of the September series is Rs 1 lakh crore, compared to the previous month’s average of Rs 80,000 crore.
“The long rollover cost was high at up to 75 basis points (bps) compared to 60 bps normally, and despite this Nifty traders rolled over their positions. Open interest, too, at the start of a new series is high. The obvious inference is people are bullish,” said Yogesh Radke, head of quantitative research at Edelweiss Capital.
The Nifty moved in a tight 200-point (2.5 per cent) band between 8,520 and 8,720 in the August series.
Radke said markets have been consolidating following a rally in July and a big impact will only come if they breakout from the range they traded in August.
Experts said market direction will be guided by signals from the US Federal Reserve and the new Reserve Bank of India (RBI) governor.
The Nifty 50 index on Thursday closed at 8,592, down 58 points, or 0.7 per cent, amid weak global markets.
Read more -
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