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Rollover Report



India Research
In terms of percentage, Nifty (64.37%) rollover may just appear to be in line with recent averages, but in terms of number of unit wise, this is lowest open interest since early 2005!! Even if we just compare with last month then Nifty has reduced substantial open interest. This highlights that despite market making new highs in last week; the leverage in main instrument of market has been reducing, indicating that this market is not in any overbought zone. On the other hand, BANKNIFTY (66.94%) has added some positions compared to last month, which we believe are more of long positions. The process of change in hands in equity continues as stronger hands (FII’s) are in accumulate phase while DII’s are seeing redemption pressure; so don’t expect crash like situation in market. Liquidity tap  may continue as most of the indicators like bond yields, crude oil, etc are pointing towards further inflow coming. For first half of Feb series we have bullish stance on the market and we may see breach of new resistance of 6100 and post that market reaching to higher levels of 6200-6250. However we recommend buying on dips as implied volatility of calls is higher than that of put options of Nifty. Source: Angel Broking

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