Sectorally, IT sector was the centre of attraction for a major part of the April series as all the IT counters ended well in positive territory and they also added a huge amount of long positions.
Post a decent correction in preceding two months, April series kick-started on a positive note and with a good amount of short positions. The Nifty continued to make higher highs as the month progressed.
April month was completely dominated by the ‘Bulls’ as we witnessed positive closing in 15 out of 19 trading sessions of April series.
As a result, Nifty concluded the April F&O series a tad above 10600 mark, with a gain of around 5 percent over its penultimate expiry.
Sectorally, IT sector was the centre of attraction for a major part of the April series as all the IT counters ended well in positive territory and they also added a huge amount of long positions.
The Nifty has retraced about 50 percent of the fall seen in February and March. In this up move, we witnessed the formation of fresh long positions.
Rollovers in Nifty stood at 72.32 percent which was above its quarterly average in both percentage term as well as in term of net open positions, which indicates that the long positions formed in the last month got rolled to the next series ahead of Assemble Election in Karnataka.
However, some of the previous shorts, which got rolled from March series, are still intact in the system. Foreign institutional investors or FIIs, who were light on positions at the start of series, too participated well in the up move and as a result.
FIis 'Long Short Ratio' in index futures has moved higher from 18.20% (March expiry) to 54.40% (April expiry). At the same time, they sold equities worth around Rs. 8140 crores in last one month.
The BankNifty underperformed the benchmark indices in the month gone by and formed a good amount of mixed positions. Rollovers in banking index stood at 82.59 percent which is much higher than its 3-month average rollovers of 70.51 percent.
The open interest has also increased by 29.89 percent on a month-on-month basis which indicates that a blend of long and short positions got rolled to May series.
On the Nifty options front, 11000 call option is attracting trader’s attention; while 10500 – 10300 put options has added huge positions.
Considering the overall options activity, 10400 – 10800 would be a broader range for the Nifty in May series.
Stocks to watch in May series:
On stock front, good amount of long positions got rolled in stocks like MindTree, NIIT Tech, Tata Elxsi, DCB Bank, Nalco, etc.
While counters like PC Jeweller, Reliance Communications, HPCL, BPCL, IDEA and IDBI Bank, etc. had seen a huge correction in the last series and the shorts formed in these stocks got rolled to the May series as well.
MORE WILL UPDATE SOON!!
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