Mr. Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking):
- Nifty rollovers above 3 month average
- FIIs biggest ever single month buying in equities
- 'Long Short Ratio' surged to 77%
"It has been a historical series for the Indian equity market as we saw index clocking fresh record highs beyond the psychological mark of 13000. Post some consolidation on the first two trading sessions of November series, we saw strong buying emerging to propel the rally towards 13150 mark. Eventually, we concluded the second consecutive series with whopping gains. However, this rally wouldn't have been possible without the contribution of BankNifty, which rallied 22% in November series and almost 45% in the span of merely two series.
In F&O space, we did see decent long formation in Nifty and these positions have been rolled over too. The rollover for Nifty stood at 77% which is above the three month average. For the banking index rollover stood at 79% which prima facie may look strong; however, considering the open interest series on series it's on the lower side. Interestingly, stronger hands continued pouring liquidity since May 2020 (except September), they bought equities worth Rs. 57,604 crores in November series which is highest single month buying figure. Unlike last series, they have been net buyers in the index futures and they also preferred rolling over same to December series. As a result, their 'Long Short Ratio' has surged from 44% to 77% series on series. The above rollover data remains positive but one should prefer trading in individual counters for the better risk reward ratio. For the coming week, 13500 call and 12800 puts are attracting trader's attention."