 "F&O Watch: Bullish trend likely to continue in August series amid volatility")
The July F&O series ended with gains amid strong buying interest from foreign funds and the uptrend is likely to continue in August. The July F&O derivative contracts expired today.
Nifty closed the July series with the series gains of 4.60% and settled more than 125 points higher than its monthly VWAP (volume weighted average price) which indicates that longs are on upper hand in the market and holding their grip.
Nifty witnessed rollover of around 63.50% on provisional basis which is lower than last six month average in terms of percentage but in line in terms of number of contract. Rollover cost was 0.50% in the last 2 sessions but declines towards expiry which indicates that short covering was also observed and traders would wait for a small decline to add to longs position as risk – reward ratio for fresh longs is not much favorable comparatively.
Sectors which registered higher rollovers include Media, Metals, FMCG, Pharma, Finance stocks while some of the stocks which recorded better rollovers include are Tata Global, Marico, HDFC Bank and L&T Finance Holdings among others.
OutlookPut
Nifty has formed a Bullish Candle with the highest daily close in last one year and given a hope for next leg of rally as it has been making higher top – higher bottom formation.
"On the option front, in the August series, maximum Put OI is at 8500 strike while maximum Call OI is at 9000 strike. OI concentration is scattered at different strikes as of now being the start of next series but maximum Put OI at 8500 strike would shift the support base on higher side to take the index on higher zones going forward," Taparia added.
Nifty closed the July series with the series gains of 4.60% and settled more than 125 points higher than its monthly VWAP (volume weighted average price) which indicates that longs are on upper hand in the market and holding their grip.
Nifty witnessed rollover of around 63.50% on provisional basis which is lower than last six month average in terms of percentage but in line in terms of number of contract. Rollover cost was 0.50% in the last 2 sessions but declines towards expiry which indicates that short covering was also observed and traders would wait for a small decline to add to longs position as risk – reward ratio for fresh longs is not much favorable comparatively.
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Bank Nifty managed to hold above the psychological 19000 mark and registered a highest daily close. The sectoral index has to hold above 19000 zone to witness an upmove towards 19300 and 19500 zone while on the downside supports exists at 18750 and 18500 levels.
Sectors which registered higher rollovers include Media, Metals, FMCG, Pharma, Finance stocks while some of the stocks which recorded better rollovers include are Tata Global, Marico, HDFC Bank and L&T Finance Holdings among others.
OutlookPut
Nifty has formed a Bullish Candle with the highest daily close in last one year and given a hope for next leg of rally as it has been making higher top – higher bottom formation.
"On the option front, in the August series, maximum Put OI is at 8500 strike while maximum Call OI is at 9000 strike. OI concentration is scattered at different strikes as of now being the start of next series but maximum Put OI at 8500 strike would shift the support base on higher side to take the index on higher zones going forward," Taparia added.