Rollover for December expiry
What is rollover??
Rollover means closing the current month’s contract and shifting positions to the next month. When we buy/sell any contract it will have an expiry date. Hence, before the expiry date, the same position is formed for the next month. For example, December series expiry is on December 30, 2021. Thus, traders who are long (short) will close their existing position for the December series and create the same position for the January series. This process of moving from one month to another is termed as rollover.
The December series witnessed volatile trade and for the major part of the series, cash based selling continued. However, despite trading negative, the volatility index cooled-off ~23% while for the current expiry week, writing Strangle and Straddle strategies were deployed in the market. Hence, we feel the index will remain in a range. Also, on account of CPSE and Nifty rebalancing, stock specific actions are expected in the last hour of trade. Nifty December series VWAP was marginally below 17200. Hence, we expect the Nifty to expire near VWAP levels (+/- 50 points). As far as rollovers are concerned, we feel positive price action is expected in Ipca labs, Navin Fluorine, Trent and UBL.