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Its rollover time






Most of the traders carried their bullish future positions forward towards the July with the expectations that the markets will rebound around the presentation of the union budget on July 10 with an expected gain of about 5 to 10 % despite the fact that the markets remained range bound of late. Its expected that the budget will be progressive and reform oriented The nifty options had the highest build up in open interest was at 8000 strike with approximately 45 lakhs shares in open interest . With maximum call options was around 8000 strike and put options writing at 7400 to 7000 strike with a 100 points interval. The capital goods and the PSU banks are expected to do a healthy rollover.


Specifically speaking the stocks of LIC housing ,PNB,BHEL AND L&T,NTPC and power sector , Aurobindo ,just dial  and Apollo hospitals did strong roll over too . Rollover is nothing but carrying forward the future positions from mone series to the next due to the nearing of expiry date There are two things one is to let the positions lapse or enter into the similar contract at  a future date, it can only be done in futures and not in  options .Its the last Thursday of every month when the Equity derivatives contracts are settled and if Thursday happens to be a  holiday than day prior i.e. Wednesday .


Rollover can be done from the last week till the last close of the trading hours of that day .Rollover is simply a percentage of total positions although there are no benchmarks for rollovers  but there is comparison on the basis of the historical previous data ,Although the rollover is just the indication of the traders willingness to carry forward their bets but these figures will not be able to indicate the direction in which the traders have put bet .