See long rollover in tech, cement & auto sector: Amit Gupta

Amit Gupta of ICICI Direct, in an interview to CNBC-TV18 shared his reading and outlook on Futures and Options (F&O) market and specific stocks.

Below is the edited transcript of his interview to CNBC-TV18 Also read: PNB thrills mkt, posts 14% profit growth on low provisions Q: Where do you see the January series closing up on the Nifty and what early signs for the next series? A: The volume weighted average price (VWAP) of this series has been at 6040. The market has spent lot of time there, in fact last couple of weeks it was near this price only. We expect the final expiry of the market to be close to 6000 or 6040 levels. We don’t expect the VWAP selling coming into the market. The Nifty futures open interest is quite low. The roll spread we have seen is around 30. So, the VWAP selling might not come quite sharply right now. Q: Do you have any strategy for the last 40 minutes of trade on individual stocks? A: We should look at certain stocks which can see some short covering and to identify that we should look at the rollovers. The rollovers have been low in the pharma space. Whereas Lupin and Dr Reddys had some short build coming up. The positions are not getting rolled. So, it is possible that one can see short covering in these two segments. Q: Particularly what is the activity that you are seeing on Punjab National Bank (PNB) and ICICI Bank? A: PSU banking had some short build up and they have come down also. However, after the very positive set of numbers in PNB these shorts are stuck. They have also rolled the position to the February series. It is possible that the upward momentum in the PSU banking may continue in February also. State Bank of India (SBI) was moving in a range and didn’t give up in terms of price, Rs 2380-2420 is a good support area for it. There maybe some more range bound sessions in the stock before it may start moving up. It will wait for the results also. However, Bank of Baroda (BOB) could be the direct beneficiary after the PNB results. One can see some more short covering into that stock. Q: As we head into the February series, where else do you see long rollovers on individual stocks? A: It is technology, cement and auto sectors. In cement, it is ACC Cement where we have seen some positions being rolled and also JP Associates. In pharma it is Cipla and in capital goods Bharat Heavy Electricals Limited (BHEL) has seen some kind of rollovers.