Derivatives Rollover Report - Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):

- Rollover in Nifty at 78%, above three month average of 71%,
- FII's long-short ratio at just about 14%,
- Rise in India VIX leads to higher volatility,
- Traders advised staying light on positions

The February series started on a weaker note as the Nifty corrected sharply in initial couple of sessions to almost test 11600 marks. The index then witnessed a V-shaped recovery till mid Feb to reclaim 12200 in just a couple of weeks. However, the spread of Corona Virus resulted in a meltdown in global markets and our market too followed the peers to breach the swing low of 11614 at the end of expiry. During the recent fall, we witnessed decent amount of short formations in the Nifty futures as the price correction was supported by rise in open interest. FII's, who had started the February series with good quantum of short positions in index futures, continued to remain on the short side throughout the expiry. In fact, they have also rolled over their short positions to the March series as their index Fut. 'Long-Short' ratio is just around 14%. India VIX, which measures the near term volatility of the markets, is at nine months high which is not a good sign for the markets. Looking at the above data, it seems that the market could continue to remain under pressure and the volatility could remain high in the near term. Hence, it is better to stay light on positions in such scenarios and wait for some stability before taking any aggressive positions.

Source : Equity Bulls

Keywords