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Rollover activities to play key role in Nifty move towards 18500

Commentary:The Nifty has reverted from its major Put base of 18000, which was also near the VWAP for the October series. Beaten down sectors like metals and stocks like Asian Paints, Eicher Motors, UltraTech Cement witnessed covering whereas supportive actions continued from Reliance Industries, HDFC and few other heavyweights from the banking space. As the week progressed aggressive closure among the Call shorting positions helped the index to trade with a positive bias.

Major Option activity (Weekly):

Major Call OI change in today’s session: 18300 (24.8 lakh), 18400 (9.2 lakh) and 18500 (10.1 lakh).

Major Put OI change in today’s session: 18200 (25.7 lakh) and 18300 (24.92 lakh).


Outlook:A mixed bag of activity was observed as far as rollovers are concerned. Still, rollover activity is yet to pick up pace. However, looking at the broader trend in the Nifty, the OI base is relatively low with lower basis points. Hence, chances of fresh long formation in the November series are very much possible. Among heavyweights, few stocks like Kotak Mahindra Bank, L&T, Hindalco, HDFC Ltd and a few from pharma have a similar pattern with lower OI base. Positive rollovers in these stocks should help the Nifty to head higher. On the option front, 18300 Call saw addition of almost 25 lakh shares in today’s session with the Nifty trading well above this level. Closure in these Call writing positions should help the Nifty to test 18500 levels again.