Cement, IT, metals sees strongest rollovers

CNBC-TV18's research analyst, Anichya Shah has given F&O highlights.

It’s a quiet expiry not the usual expiry where we see a lot of volatility and that’s because the entire dynamics and lot of those arbitrages do not exists in the market any more where they buy cash and they been rolling over their positions currently to the April series. They being shorting the April series and that will be met by supplement long position by speculator in lot of stocks futures. 

So with those dynamics absent and with the open internet fairly low around May 2007 levels in terms of open interest we would have rolled over May-June levels. The market has remaining pretty quiet and no major pressure. Rollovers only at about 63% market wide and this is on a low open interest base similar is the case with the Nifty not a huge pickup from yesterday’s 50% rollovers only about 53% seen. So all and all it’s been pretty quiet. 

What’s interesting is the 4,500 put in the April series and the 5,000 call in the April series has seen a fair bit of action. So this could be some sort of a broad range going into next series. Cement, IT and metals have seen the strongest rollovers but overall rollovers have remained weak.

Nifty rollovers have not significantly picked up. March and April have been trading at some sort of a premium primary driven by a fair bit of short covering, some bit of long rollovers have put additional pressure on April series and its gone to about 11 point premium this is been the case with the last two-three trading sessions. 

JSW Steel, a stock that has seen strong rollovers over the last two-three expiries; continues to do so in fact under performed the Nifty in last expiry and today at these low levels we are seeing some semblance of long rollovers or long build-up which is evident from 0.8-0.9% premium in the April series. 

HOEC is another stock that popped up on our radar; some bit of long rollovers in this stock, net addition of about 4 lakh shares and holding a good premium.

Parsvanath in the real estate space along with HDIL has seen some semblance of long build-up contrary to their larger counterpart DLF and Unitech where we are seeing fair bit of short build-up.

JP Hydro, momentum boy seen a good addition of April contracts; 17 lakh is the open interest build-up, holding a good premium.

Tata Motors a stock of the day has seen some semblance of short rollovers as the next month is at about 4 point discount and rollovers are picking up on that counter more towards the short side.