Daily Market Commentary - May 27, 2020 - Bonanza Portfolio
Mr Vishal Wagh, Research Head
Today, Nifty opened with a gap up and continued to rally throughout the day on the back of pending rollovers and short recovery. Nifty rallied more than 3% to close above 9300.
Banknifty also participated in the rally with the gains of more than 7%. Normally it is seen that in the first couple of days of expiry week maximum rollover takes place. Due to holiday on Monday the positions have got rolled today. Till yesterday Nifty got a rollover of 42% whereas, As Banknifty had completed rollover of only 22%. Whereas, the last six months' average rollover is 71.24% and 70.48% respectively.
The same things are happening for future and options stocks as well. Rollovers were on the lower side in Auto, Banking & FMCG as per yesterday's closing date. So, few positions may be rolled today and more positions will be getting rolled tomorrow.
Market Breadth remained in favor of the Bulls. For every couple of gainers, there was one loser. Except Nifty media, all sectors participated in a rally. India VIX contracted by 0.96%, remained just below 31.50. USDINR is trading at 75.60.
Going forward, the market may see volatility due to the last day of May expiry. As the resistance of 9200 has been crossed, move towards 9500 cannot be ruled out. And now 9200 will become support for this week.