No sign of a dip in market sentiment

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No sign of a dip in market sentiment

Things look pretty good out here this morning. Indian markets are moving up and global markets are fine. There has been nothing in the minutes of the Fed meeting, which should spook the market this morning and crude has cooled down below USD 70.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Tata Communications | Suzlon Energy | Polaris Financial Technology | Reliance Petroleum |

Futures and Options:

Rollovers been good; 46-50% has been done and one would expect to see that there are two full days to go and one will probably see 65-70% get done as well. But now we are at Rs 35,000 crore odd open interest so the market is not as light as it has been for the last three months. After that big correction in May, positions have got cut down substantially. For the first time, when the positions will get opened up in September, one will find that there is been about 20% kind of pile up or more from the average of the last two-three months on a series opening basis.

But little more risk, as they say in institutional parlance, has been put on the table even for domestic traders. They are feeling a bit more confident that cuts both ways because if the market has to go up, that will create momentum on the way up, as more positions get loaded on. But if the market were to correct, that position will come off quickly. So there is more risk in the market now from the F&O perspective.

But there is more momentum, which might built-up over next few days as well. There are only few stocks where one needs to a bit careful. Apart from VSNL and RPL , if one looks at stocks like SRF , Polaris and Suzlon , their rollovers have been not good. So one needs to be careful with two days to go on what happens in the just in the next couple of days on those stocks. Otherwise, rollovers are not a problem and the cues from the F&O side are pretty okay.