F&O WATCH: Nifty rollovers at 45%

Nifty opened weak and witnessed heavy selling pressure through the day and finally declined 80 points on Tuesday. Market rollovers are seen at 42% with only two days left for the expiry of April futures.

Nearly 45% rollover was seen in the Nifty series. Around 55-65% rollovers were seen in JP Hydro, Nagarjuna Fertilisers, India Cement, Ashok Leyland, Century Textiles, IDBI, PNB and Gujarat Ambuja.  

The cost of carry (CoC) of Nifty April futures has turned negative 56.34% as against positive 57.76% the previous day. The CoC of Nifty May futures has also turned negative at 5.92% as against positive 1.07% the previous day. The Nifty May futures are trading at 16 points discount.
 

OPEN INTEREST                                             (In million)
Underlying	25-Apr	24-Apr	21-Apr	20-Apr	19-Apr	18-Apr
Nifty	55.49	53.67	49.63	48.93	49.09	47.80
Tata Steel	22.98	22.05	21.18	19.81	18.57	18.05
RIL	25.82	24.80	22.47	22.34	20.46	22.23
Satyam Computer	22.80	21.99	19.30	14.93	13.02	13.01
SBI	16.14	14.99	14.14	13.26	12.88	12.83
Rel Cap	15.45	15.04	15.18	15.10	14.36	14.57
MTNL	52.56	51.74	51.91	49.92	48.33	47.96
Total	1363.75	1343.68	1297.46	1247.13	1225.04	1210.09

Some build up was seen in Infosys (15%), which indicates long positions taken at lower levels.  Given the positive CoC in the stock, we may see a bounce in the coming days.

Profit-booking was seen in J&K Bank (-11%), Aurobindo Pharma (-10%) and Essar Oil (-7%) as OI has declined. Since the CoC has turned positive at lower levels in J&K Bank & Essar Oil, we may see further upsides in the stocks.

A decline of OI in Cochin Refineries (-11%), BEL (-8%) & HCL Tech (-11%) with no significant move in price suggests that people are exiting their positions in these counters.