Nifty rollover up at 60%

F&O OUTLOOK

With strong global cues, the Indian markets open higher and consolidated further with handsome gains at close. The Nifty December futures closed at 6,007.50, up 218 points, while the Nifty January futures closed at 6,001.55, up 226 points.

The Nifty rollover was healthy at 60 per cent with the January futures adding open interest of 4.82 million, while the December futures shed 6.04 million shares.

The rollover for the Nifty stocks was healthy between 35 and 70 per cent. Except Bajaj Auto, all other Nifty stocks gained on fresh long positions.

Bajaj Auto's January futures witnessed a short position as stock declined marginally by 1.23 per cent to close at Rs 2,716.20, while open interest has increased by 38,200 shares.

Front-line IT stocks have seen huge long positions built on account of attractive valuations. Infosys January futures gained 6.5 per cent to close at Rs 1,802.95 with open interest rising by 8.83 lakh shares. Satyam Computer gained 6.65 per cent on fresh long position, which was up by 2.02 lakh shares.

TCS was up 5.3 per cent and Wipro by 8.4 per cent on account of fresh long position. The Put/Call ratio (PCR) of Nifty options moved up on Monday from 1.08 to 1.21 as put option added an open interest (OI) of 10.86 lakh shares, while call options shed OI of 6.98 lakh shares.

The short covering by call writers at 5,900-6,200 strikes indicates that Nifty to rise further when markets open on December 26. According to technical analyst Suresh Kumar Iyer of Asit Mehta Research, the Nifty is likely to target 6,150 and 6,250 thereafter.