The trend of placing the contra bets continued in May series with FIIs pulling out Rs 11,000 crore and DIIs pumping in Rs 14,000 crore into the Indian equities.
Markets continued to retain their winning streak in the May futures and options (F&O) series, with benchmark indices closing at the highest levels on an expiry-to-expiry (EoE) basis.
The Nifty Bank index was the biggest outperformer, gaining 8 percent on an EoE basis. The Nifty has underperformed the Nifty Bank index by whopping 6.7 percent on an EoE basis.
Long Vega positions in Bank Nifty options were the flavour of the series as the index saw a major broke out, strangling option writers.
The trend of placing contra bets continued in the May series with foreign institutional investors (FIIs) pulling out Rs 11,000 crore and domestic institutional investors (DIIs) pumping in Rs 14,000 crore into Indian equities.
The long/short ratio of index futures for FIIs remained below one time during the series. Rollover of Nifty/Bank Nifty stood at 63/75 percent (1.95 crore/28.8 lakh shares), as against 72/83 percent (2.30 crore/21.1 lakh shares), respectively.
Nifty rollovers were lower in terms of total percentage of open interest as well as the number of shares vis-a-vis last month and the last three-month average. Rollovers for the Bank Nifty were higher in terms of total OI (number of shares) vis-a-vis last month and the last three-month average, indicating a continued upward bias for the banking index.
On the options front, June series starts with maximum put OI at 10,600 strikes (3.05 million shares) and maximum call OI at 11,000 strikes (3.04 million shares).
Stocks to watch out for in the June series:
Long build-up: Bharat Financial, Page Industries, Coal India and Canara Bank
Short coverings: Reliance Communications, KPIT Technologies, MCX, ICICI Bank and Exide Industries
Long unwinding: Suzlon, CG Power & Industrial Solutions, Dalmia Bharat, Andhra Bank and Adani Enterprises
Short build-up: Allahabad Bank, Housing Development Finance Corporation (HDFC), Bharat Heavy Electricals, Mangalore Refinery and Petrochemicals, South Indian Bank and EscortsDisclaimer: The views and investment tips expressed by IIFL on moneycontrol.com are its own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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