Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Interesting Articles

| More

Nifty Gained 8% in the June Series, Bank Nifty Surged 12%-Highest Since March 19 - HDFC Securities

Posted On: 2020-06-26 11:45:15


Mr. Nandish Shah, Technical Research Analyst, HDFC Securities

Highly volatile June series ended with the gain of 8%. After rising sharply during the first week of the June series, Nifty corrected nearly 8% from the high of 10329 made on 08-June to 9544 on the back of weak global cues. However, Nifty resumed its uptrend again and rallied more than 10% from the low and finally ended the series with the gain of 8%.

Bank Nifty outperformed the Nifty after three series of underperformance, where it surged 12% in the June series. This is the highest series to series gain since March 2019.

In the Stock futures' segment, Open interest in terms of number of shares at the beginning of the July series is at 280 Cr shares as against 292 Cr shares at which we had begun June series. It is 33% lower than the March 2020 series and 45% lower than all-time high Open Interest we have seen in February 2018. These lower leveraged positions despite surge of 40% in the Nifty from the March low Indicates that markets are still light in-terms of positions which augurs well for the markets going forward.

We are starting the July series with the Nifty future OI of 1.14 Cr shares. Though it is slightly higher than the June OI of 1 Cr shares, it is nearly half of the last 10-year average OI of 2 Cr shares.

These lower Open Interest in the Nifty and stock futures at the beginning of the July series indicate traders are still skeptical about the future even after sharp rise in the June series. Lack of confidence creates a wall of worry, which the markets are adapted to climbing. Lower participation amongst market players tells us that the derivative positions are not likely to be a millstone around the neck of the markets for the July series also.

We are starting the July series with the bank Nifty future OI of 13.1 lakh shares as against 14.34 lakh shares last series. These lower Open Interest coupled with the sharp rise in the Bank Nifty during the series Indicates profit booking at higher levels.

We have seen a healthy rollover of 92%in the stock futures segment as against the last three series average rollover of 89%. In the Nifty and Bank Nifty also we have witnessed rollover of 79% and 81% as against last three series average rollover of 70% and 73% respectively.

Outlook for the July series

To Sum it up, Lower stock Futures' Open Interest, despite 40% rise in the Nifty from the March lows, which Indicates markets are still light in-terms of positions, Lower Open Interest in the Nifty Futures' in terms of number of shares (half than last 10 year average), Stable India VIX- fear gauge Index and aggressive Put writing at 9800-10000 levels Indicates that downside is limited in the market and one should remain optimistic for the July series also.

However, considering profit booking by FIIS' at higher levels in the Index futures segment and Call writing at 10500-10700 level Indicates that 10500-10700 level to act as a strong resistance going forward.

Therefore, for traders our advice would be to remain bullish and use any correction towards 9900-10100 levels to accumulate long positions with SL of 9700 levels. On the higher side, any sharp rally towards 10500-10700 levels should be utilized to book profit to buyback at lower levels.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Decoding: Pledging of shares and upfront margins in the cash market!

SIDBI joins hands with Govt. of Rajasthan for the development of MSME ecosystem in the State

Are promoters using rights issue to increase their stake in the company?

All you want to know about Rights Entitlement

45% of the customers have taken moratorium PAN India; more observed in the northern region of the country: Finway

DISCOM dues balloon to ₹1.199 trillion

TNPL recommends dividend of Rs. 6 - Dividend Yield @ 5.45%

HUDCO - Rs. 2.35 dividend recommended - Dividend Yield @ 7.01%

PTC India Ltd - Rs. 5.50 dividend recommended - Dividend Yield @ 11.46%

PNB Gilts Ltd - Rs. 3 dividend recommended - Dividend Yield @ 8.57%

How to apply for Rights Issue of Arvind Fashions Limited?

How to apply for Rights Issue of Aditya Birla Fashion and Retail Limited?

An insight on Aarti Surfactants Limited

Covid-19 and its impact on businesses

IMF Growth Revision for India - Acuité Ratings & Research

Co-operative Banks - RBI Supervision - Acuité Ratings & Research

HDFC Securities views on relaxations announced by SEBI

India can reduce China trade deficit by over $8 billion in FY21-22 - Acuité Ratings & Research

How can investors preserve their wealth during times of crisis

JM Financial Yield Enhancer (Distressed Opportunity) Fund I raises Rs.160 crore in its first close

Samco Securities launches BTPT - Buy Today, Pay In Two days for Investors Buying Stocks

No data breach of BHIM app: Report

India's sovereign rating downgrade by Moody's - Acuité Ratings & Research

Banking Sector Credit Trends - Unusual trends - HDFC Securities

Rollover Report for May - June 2020: Angel Broking

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q4 GDP

Mr. Dhiraj Relli views on GDP Numbers - HDFC Securities

Banking Sector Update - NIM compression on the cards - HDFC Securities

May series ends with a bang: Angel Broking

May 2020 F&O Series Expiry - Mr. Nandish Shah, Technical Research Analyst, HDFC Securities

Views on Impact of Locusts Attack on Agriculture - Acuité Ratings & Research

ICAI establishes Center for Audit Quality

Bharti Telecom raised over Rs. 8433 crores through Accelerated Book-build offering of equity shares of Bharti Airtel

SATYA MicroCapital raises INR 105 crore equity funding from Japan-based Gojo & Company Inc.

Mr. Rajnish Kumar, Chairman, SBI & IBA on the announcements made by RBI today

Views of Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on RBI announcement

Views of Mr. George Alexander Muthoot, MD, Muthoot Finance on RBI announcement today

Views of Ms. Anagha Deodhar - Economist, ICICI Securities on the RBI announcement today

Views on RBI Policy announcement today - Federal Bank

RBI Monetary Policy (May 2020) by Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

Religare Finvest Ltd. on today's monetary policy by RBI

RBI monetary policy announcement - Mr. Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd

RBI's proactive measure will help revive economy: Dr.Niranjan Hiranandani

Mr. Dhiraj Relli views on today's announcement made by RBI

Views of Mr. R K Gurumurthy, Head - Treasury, Lakshmi Vilas Bank on the RBI announcement today

Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities on RBI announcement

Suman Chowdhury, Chief Analytical Officer at Acuité Ratings & Research, on today's RBI announcement

General Insurance Sector Update - GDPI continues to decline due to Lockdown - HDFC Securities

Stress in Banking Sector to Continue: Geojit Financial Services

Banking Sector Update - What have banks said - HDFC Securities







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019