An Event-studded week

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An Event-studded week

One good thing is that budget will be on the first day of the new series and in that sense we will have a clean slate. But this expiry in itself is not looking that bad. Markets are still light, Nifty futures have seen aggressive shorting and there is good rollover in select stocks.

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CNBC-TV18's research analyst, Anuj Singhal - My fears for Friday's trade came true and markets didn't recover at all from a gap down. In fact if someone had gone long on gap down, he would have still lost money.

The only space that has looked good over last few days is the metals space where both ferrous and non ferrous stocks are shining and it looks like even on bad days, decline are being used to accumulate these stocks. Hindalco stands out for the kind of aggressive rollovers it has seen. SAIL too was up quite a bit in a weak market last week.

What a week of trade we are entering. We only have the Union budget, F&O expiry for the news flow and HDFC Bank-CBoP merger formalities, excitement over Rpower bonus. That's it!!!

Curiously enough, Centurion BoP does not trade in F&O while J&K Bank and Yes Bank do. I am sure there would be reasons for the same but I am unaware of those. But if it was available in F&O, it would have been among the top traded counters this week for sure.

One good thing is that budget will be on the first day of the new series and in that sense we will have a clean slate. But this expiry in itself is not looking that bad. Markets are still light, Nifty futures have seen aggressive shorting and there is good rollover in select stocks.

As far as Rel Power is concerned, it's going to be quite tricky. The March futures discount is down to 3.5 points from double digits and now that the bonus ratio is out, traders will be working their numbers on the excel sheet. But one thing is for sure; there is nice arbitrage still between the Feb and March futures as the record date is likely to be in April only

Would be interesting to see if volumes pick up as we enter the expiry week because Friday was very close to hitting a 6-month low for F&O turnover.

DISCLAIMER: The author is not allowed to trade in equity markets including Futures and Options. His only exposure to capital markets is via shares of TV18 and Network18 granted to him as ESOPs by the company and investments in some long-term mutual funds.