BUY BANKNIFTY 29300 PE 350 TARGET 510-740 SL PAID
Nifty and Bank Nifty futures have witnessed healthy rollovers to the December series, with more long positions being carried over, according to analysts. Nifty futures saw a rollover of 77 per cent, much higher than last month’s 70-71 per cent; Bank Nifty rollovers remained firm at 78 per cent, the same as last month’s.
According to analysts, most of the short positions have been squared-off during the series, as the Nifty saw a new a peak of 13,000.
The Nifty December futures closed at a good premium at 13,022.55 as against the spot close of 12,987. Similarly, Bank Nifty futures closed at 29,677.50 against the spot close of 29589.55.
S Hariharan, Head – Sales Trading, Emkay Global Financial Services, said: “A 50 per cent month-on-month increase in net long positioning for FIIs in index futures has led to an expansion of rollover basis across the board this month. This has accompanied a 14 per cent increase in market-wide open interest in single stock futures.”
Hence, the sentiment going into December series is quite bullish, he added.
The revamp done by MSCI early this month in Global Standard Indices has also turned traders bullish. MSCI had increased the weight of several Indian stocks that are part of its indices and also inducted several new stocks into its Global Standard indices.
MSCI Global has added 12 Indian stocks, including Kotak Mahindra Bank and YES Bank, to MSCI India Index. The other stocks are ACC, Adani Green Energy, Apollo Hospitals, Balkrishna Industries, IPCA Lab, L&T Infotech, MRF, Muthoot Finance, PI Industries and Trent. The global index major, however, has excluded LIC Housing Finance and Bosch from the index.
As the changes will become effective from Monday, analysts expect an inflow of around $2.5 billion into Indian stocks. November has seen a record inflow of $7.5 billion from FPIs in equities and coincided with an 11 per cent return on Nifty.
Analysts also said rollovers picked up in sectors such as pharma, metals and banks; large-cap stocks such as Hindustan Unilever, Tata Consultancy Services, HDFC Bank, ICIC Bank, Bharti Airtel and Bajaj Auto also saw long rollovers, they added.
Volatility index slips
The India VIX slipped on a series to series basis. The VIX, which closed at 24 last month, slipped sharply to 20. However, analysts said traders should not read much into it, as last month the VIX jumped due to uncertainty over US Presidential election.
“However, VIX below 24 is always a comforting figure for a bullish phase.