INSUBCONTINENT EXCLUSIVE:
Traders are expected to be on their toes in October if trends in rollover of derivative contracts is anything to go by in the wake of the
NBFC stocks-led carnage seen in the Indian markets in recent days
Analysts said traders squared off their bullish futures bets before expiry on the September series on Thursday and carried forward bearish
wagers on worries the ongoing turmoil in the stock market may not be over yet.
The Nifty rollovers stood at 63 per cent versus average
rollovers of 69 per cent in the last three series while market-wide rollovers were at 79 per cent, lower than threemonth average of 81 per
The Nifty futures open interest in October series stood at Rs 18,800 crore compared to Rs 28,300 crore on previous expiry day.
The
lower-than-average rollovers to the October series showed scepticism in the market ahead of quarterly earnings season and Reserve Bank of
in most sectors was severe and significant amount of liquidation of long positions was seen in the run up to expiry day
This is the case after such swift and severe fall in the market
highest in the tenure of monthly contracts in seven months
The PSU Bank, Realty, Media and Auto indices on the NSE were the laggards in the series with a decline of 11-17 per cent.
The markets hit
record highs at the end of August but during the September series, sentiment was jolted after news of ILFS defaulting on repayments and its
debt rating being downgraded
Weak rupee, widening current account deficit and crude oil prices shooting past $80 per barrel also soured sentiments
Then came the rout in NBFC stocks which was triggered by DSP Mutual Fund selling bonds of Dewan Housing Finance Corp at a higher yield
India is the worst performer within Asian markets so far in September as a result of these developments.
The Nifty ended down 76.25 points
or 0.7 per cent at 10977.55 on Friday and the Sensex shed 218.10 points or 0.6 per cent to close at 36324.17 following the US Federal
positions being carried forward
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking said metal stocks have shown outperformance amid decline in the
broader market and it is advisable to focus on such spaces than trying to catch falling knives in the market.
Amit Gupta, Head of
Derivatives at ICICIdirect sees support for the Nifty index in the October series between 10,800 and 11,000 and resistance at 11,500
