120562 Investors following ICICI Bank. Share this News with them.
0
Like this story, share it with millions of investors on M3
Which F&O stocks should you go long/short in Oct series?
Angel Broking has come out with its monthly rollover report on Banking and Financials, Metal & Mining, Oil & Gas, Auto & Auto Ancillaries, Information Technology and FMCG.
Angel Broking has come out with its monthly rollover report on Banking and Financials, Metal & Mining, Oil & Gas, Auto & Auto Ancillaries, Information Technology and FMCG.
After significant fall in August series, a moderate gain of 3.41% in NIFTY (61.19%) was big relief to the market but within the range of 4750-5150 huge swings were witnessed. Rollover both in terms of percentage and number of shares wise is less in Nifty; however in BANKNIFTY (76.57%) rollover has been substantially high on both fronts. This index has not witnessed much of short covering even during the bounces in market as well as in this index itself in the series gone by.
On the options front it can be observed from puts built up that support zone of 4700-4800 may be intact atleast for first half of October series. Interestingly call built-up is prominent only in 5200 strike. Also strikes above it have seen substantiall addition in OI. Starting a new series with high implied volatility of 30.22% also supports the argument that market may see increased volatility in above range for the first half without violating the range meaningfully.
Banking and Financials • AXISBANK (85.12%) has seen significant addition in open interest plus rollovers are on the higher side. It's more of short positions which got rolled over. 1000-1020 is good support which should be strict stop loss for long positions. • Among large caps, ICICI BANK 's (71.74%) OI has decline and rollover has been less too. Counter has strong support 820-830 levels and this stock in large cap banks is buy on dips candidate for us. • Both IDBI (83.40%) and IDFC (81.24%) observed short covering in fag end of series near their support levels. Counters remain in consolidation range and are on the lower side of range. Trade with positive bias in them.
Metal & Mining • Sector overall was underperformer with large cap names like TATA STEEL (84.27%), STER (78.76%) and HINDALCO (87.32%) adding short positions with fall in price and depicted strong rollovers too. They remain in sell on rise category for us. • Rollover in SAIL (79.21%) has been less and stock has been consolidating in the range of 102-115. Counter can be bought near the lower side of range as we are not expecting fresh shorting in it. • Lowest rollover in sector was observed in JINDALSTEL (75.83%) with reduction in OI. We don't expect meaningful upside in it and is a good shorting candidate around 540-550 levels.
Oil & Gas • Among large caps in this space ONGC (85.04%) is only stock which added significant OI; thanks to FPO talks. Whether disinvestment happens or not this counter may stuck in broader range of 250-290. Trade accordingly. • RELIANCE (77.46%) has witnessed short covering rally and rollover too are on lesser side. 850-860 is strong resistance and counter may not breach it in near future. • Rollover in IOC (87.07%) was in line with average but there was substantial decline in OI. Stock is near strong support zone of 300-310. Trade with positive bias in it.
Auto & Auto Ancillaries • Interestingly most interest rate sensitive stocks in this space like ASHOKLEY (84.28%), M&M (71.51%) and TATAMOTORS (82.34%) have added good open interest and have outperformed market. • HEROMOTOCO (63.89%) among liquid names have depicted lowest rollover and there has been significant unwinding in it. Counter may not depict its defensive traits in this series. • ESCORTS (92.25%) have seen strong rollover and is been inching up from 70 odd levels with high volumes. Traders and investors should not ignore this counter.
Information Technology • TECHM (85.58%), ROLTA (83.48%) and MPHASIS (83.75%) are counters in the sector which have seen huge addition of short positions and which got rolled over too. • INFY (64.96%) was the biggest outperformer in large cap in last series but has drastically reduced its open interest. We believe shorts have been cutdown. Stock may not perform the same way in this series as fresh shorting may limit the upside. • FSL (94.40%), 3IINFOTECH (93.19%) and HEXAWARE (90.50%) have depicted maximum rollover in this space.
FMCG • ITC (57.35%) has seen very low rollover. Counter had positions blend of shorts and longs in it. There may not be significant move in the counter but it may touch its strong resistance of 210. • HINDUNILVR (75.85%) though has seen decent rollover in percentage terms but in absolute OI terms there has been very less rolls. We believe defensive bets are off. Trade with negative bias in it. • Lot of short positions got rolled over in MCDOWELL-N (90.46%). 740-760 is strong support zone. Short covering likely to happen there.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
