F&OTracker Mar­ket may be Highly Choppy on May Ex­piry

The Economic Times - - Markets & Finance -

Af­ter soar­ing to new highs on elec­tion re­sults day, the In­dian mar­ket ap­pears to have en­tered into a phase of con­sol­i­da­tion for the time be­ing. The broader in­dices re­mained choppy for the most part of the pre­vi­ous week as in­vestors shuf­fled their portfolios fol­low­ing the elec­tion re­sults. FIIs who have been net buy­ers since April 16, 2014, briefly turned net sell­ers for a few days last week. The big event is out of the way, but the mar­ket will be ex­tremely choppy for the next few trad­ing ses­sions on the back of May ex­piry.

Our mar­ket has ig­nored global mar­ket move­ment in the past 1-2 months; post May ex­piry, we might just see some global cor­re­la­tion re­turn­ing to our mar­ket. Dur­ing the ex­piry, max­i­mum Nifty Op­tion OI con­cen­tra­tion was at 6,800 be­fore exit polls, as against 7,000 and 7,200 dur­ing the pre­vi­ous week; now, the max­i­mum OI con­cen­tra­tion stands at 7,500 strike. The higher shift has been on ac­count of a huge surge in call op­tion OI; this could be spec­u­la­tive in na­ture. PCR at 0.80 lev­els shows an in­crease on a weekly ba­sis.

Nifty fu­tures has rolled over ~26% to the next ex­piry. Nifty fu­tures OI over the past five trad­ing ses­sions has jumped sig­nif­i­cantly. We be­lieve most of the re­cent ad­di­tion in OI is likely to be rolled over to the next se­ries. So, rolls for this month could be bet­ter than in April. TCS, Infy and Sun Pharma stocks could see some respite from sell­ing in the com­ing week. How­ever, banks and re­al­ity sec­tor, es­pe­cially stocks like Syn­di­cate Bank, Ca­nara Bank and DLF, could see wild gy­ra­tions as we move closer to ex­piry.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.