April series began on a subdued note, but encouraging signs from Rollovers: Angel Broking

Views of Ms. Sneha Seth (Equity Derivative Research Analyst, Angel Broking):

"We began April series on a flat note, while F&O activity in Index was also not so encouraging. We witnessed BankNifty underperformed the benchmark index (NIFTY), as heavy weight banking counters like HDFCBANK, AXISBANK and ICICIBANK plunged more than 100 bps. Since beginning of December series, Nifty has been consistently adding long positions, due to which open interest (Nifty) has surged at 4 years high. FIIs too actively participated in this rally by pumping huge liquidity in cash segment after many years. While, in index futures too they have been forming good amount of long positions, however, some shorts were also added during last week. Rollover in Nifty may be low in terms of percentage, but is on the higher side if open interest is considered. On options front, 9500 and 9200 call options are attracting bulls attention; while, 9000 put options still remains to a sheet anchor for Nifty. Considering the above data, we continue to remain upbeat on market and would suggest traders to use declines to form fresh longs."

Source : Equity Bulls

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