Rollovers Pick Up As Nifty Edges Higher
9,200 Likely To Provide Resistance In March Expiry
More number of traders carried their Nifty futures positions into the April series compared to the previous three-month average as India’s equity benchmarks gained on Wednesday. Foreign investors bought index futures on a net basis.
Nifty rollovers stood at 57 percent with a day remaining for expiration of March contracts, a tad higher than previous three-month average of 55 percent. Rollovers reflect confidence of investors about the future movement of prices, as perceived by them. Rollovers for Nifty Bank futures were at 52 percent, much higher than previous three-month average of 44 percent.
Maximum open interest shifted to 9,100 put from 8,800 put which indicated a lower end of the range for March expiry. Considering the 9,200 call has most accumulation of open interest, it continues to provide resistance to the Nifty in the near-term on the upside. To hedge their risks, foreign investors bought 8,679 index put contracts and unwound 6,494 index puts on a net basis.
