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Nifty June series sees healthy rollover as cost of carry dips

The June series rollover for the Nifty futures was stronger than last series even as the open interest in the Nifty futures rebounded from a multi-year low of about 1.5 crore shares to about 1.9 crore shares.

The June series rollover for the Nifty futures was stronger than last series even as the open interest in the Nifty futures rebounded from a multi-year low of about 1.5 crore shares to about 1.9 crore shares. At 68.3%, the June series rollover was stronger than that of May ( 58.9%) as well as above its three-month average of 66.4%. The marketwide rollover stood at a strong 85%.

According to traders, compared to last month the cost of carry ? or the price to carry over one’s position ? shrank, making short-rolling less attractive. However, for some of the banking, infra and power generation stocks, strong short rollovers sustained.

?The Nifty has experienced healthy long rollover and the Bank Nifty has seen steady short rollover even as some of the banking stocks underwent long rollovers,? said Siddarth Bhamre, head of equity derivatives, Angel Broking.

According to Bhamre, given that the Nifty rollover has happened with better open interest, the benchmark may able to move past 5,150 mark in the July series. ?However, it may not be able to hold on to higher levels,? he added. Another traded pointed out that the premium of Nifty’s July future to the spot Nifty dropped from 20 points on Wednesday to five points on Thursday. ? Even in the last one hour of the trade, the Nifty July series was seen trading at a discount to the spot Nifty, indicating bearish bias,? added the trader.

Among banking stocks, while SBI, Kotak Mahindra Bank, ICICI Bank and Federal banks observed short rollovers of the order of 70% to 80%, HDFC Bank, Punjab National Bank and IDBI Bank observed strong positive rollovers of above 80%.

HCC, DLF, GMR Infra, IRB Infra, Suzlon, IVRCL, and JP Power were some of the counters from the infra and power generation space that experienced strong rollovers of more 80% to 90%.

?Since the outlook on the infra, construction and power sectors has remained for many months now, many stocks from these counters continue to see strong shorts being rolled over,? said another trader.

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First published on: 29-06-2012 at 01:43 IST
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