Dealers eye July series expiry between 5970-6030 range

Nifty ended Wednesday's session below 6000 shedding 87.30 points to end at 5990.50. The crack seen in Nifty yesterday has completely changed dynamics of at levels will the July series end today.

Many market participants assumed the Nifty end above 6000 yesterday, so there were lot of 6,000 Put writers writing those options at a premium of Rs 7-8-10 just to milk out the remaining premium. There was 5 point jump in premium because those Put writers were forced to cover positions. Also Read: Want to be a good trader and investor? Learn from LIC The equilibrium of what the option traders work with suggests that the July series will expire around 6,030, reports CNBC-TV18's Anuj Singhal. Rollovers have been slightly higher than last time. We have seen Nifty rollovers of about 62 percent, a lot of that had already taken place, but some of it is short rollover which is taking place especially after the kind of crack seen in yesterday's trade, especially on banking. The two most important strikes would be the 6,000 Put and the 6,000 Call because these two instruments will be traded the most as we head into the expiry. The Nifty is pretty close to that. According to dealers, the July series could expire around 5,970 or 6,030, give or take 20 points here or there. In terms of individual stocks, banking has seen so much pressure that one might just see some short covering or some profit booking in late trade which might be a bit of a sucker rally if indeed it has to happen in the second half. So, one should keep an eye on beaten down stocks like Yes Bank, IndusInd Bank and Oriental Bank of Commerce (OBC).