“Looking at the expected dividend of 4 points in the February series, the current roll spread seems to be on the lower side and may not decline further from these levels,” ICICI Securities said.
ETMarkets.com
NEW DELHI: The Nifty50 was trading around its crucial resistance level of 8,400 on Monday, ahead of the expiry of January series F&O contracts on Wednesday.
Nifty rolls stood at 19.71 per cent, lower than the three-month average of 31 per cent, while marketwide rollovers stood at 20.94 per cent compared with the three-month average of 25.72 per cent.
Open interest in Nifty futures declined sharply due to closure of positions. The February series witnessed addition of almost 1 million shares, while more than 2 million contracts were closed in the January series even as roll spread remained unchanged at 24 points.
“Looking at the expected dividend of 4 points in the February series, the current roll spread seems to be on the lower side and may not decline further from these levels,” ICICI Securities said in a note.
“At the same time, the open interest of almost 18 million shares in current month’s Nifty futures was relatively higher compared with the last series. Hence, VWAP action due to closure of positions cannot be ruled out,” it said.
Sectorally, infrastructure, FMCG and automobile stocks are witnessing high rollover of positions while pharma, finance and power segments are seeing relatively low rollovers into the February series
ETMarkets.com
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