Rollover Report for July - Aug 2020 - Angel Broking
Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
- Bank Nifty underperforms in July series - FII Long Short Ratio at 66 percent - Long formation in Cement and Pharma stocks
"Nifty started the July series around 10400 and rallied throughout the series with some in-between consolidations. The index posted gains of about 8 percent while Bank Nifty underperformed the benchmark index and ended with gains of less than a percent over last expiry's close.
The rollover in Nifty is at 77.59 percent, which is in line with its 3-month average of 77.40 percent, whereas rollover in Bank Nifty is at 75.30 percent v/s its average of 79 percent. During July series, FII's formed long positions in the index futures segment; their 'Long Short Ratio' at the start of new series is at 66 percent. The weekly options data hints at a probable trading range of 11000-11300 in the initial part of the new series. A move beyond the mentioned range could then lead to some directional move in the short term. The Bank Nifty has been an underperformer in the recent past and the rollovers there are not much encouraging.
If we look at the sector specific build up, it is seen that the stocks from the Cement and the Pharma sector have added good amount of long positions which have been rolled too. So, traders should look for stocks from these sectors for short term trading opportunities."