Mr. Ruchit Jain (Senior Analyst – Technical and Derivatives, Angel Broking):
– Nifty ends the series at 6-month high – Rollover in indices in line with average – FII’s ‘Long Short Ratio’ at 75 percent
“Nifty started the August series tad above the 11100 mark. After some initial hiccup in the first couple of sessions of new series, the index resumed its upmove and crept higher throughout the rest of the series. The intermediate declines were bought into and the index eventually ended at its six months high at 11560.
During the series, Nifty witnessed long formations as price upmove was supported by rise in open interest. The Banking index consolidated in a range for most part of the series, but we witnessed good momentum in the expiry week which was due to long formation. The rollover in Nifty is at 79.82 percent versus its average of 78.82 percent whereas rollover in Bank Nifty is at 77.91 percent which is also in line with its average. FII’s formed long positions in the index futures segment and they have rolled their long positions to the September series. Their ‘Long Short Ratio’ at the start of new series is at 75 percent which is a bullish sign. For the initial part of the series, 11500 is seen as the immediate support for Nifty whereas resistances are seen around 11800 followed by the 12000 mark.
The above rollover data and the FII’s positions indicate bullishness and hence, traders are advised to trade with a positive bias and look for stock/sector specific buying opportunities from a near term perspective. If the index breaks the 11500 mark, then one should reassess the data and trade accordingly.”
