Nifty fut premium likely to come down to normal:ICICIdirect

Nifty rollover analysis report by ICICIdirect.com

Nifty rolls were at 66.05%, lower than 3M average of 70.66% Market wide rollover was at 83.05%, lower than 3M average of 85.33%  Sectorally, pharma, metals and banking stocks are witnessing high rollover of positions while stocks from the realty, textile and cement space are witnessing relatively low rolls into the January series Highest rollover was observed in Indiabulls Real Estate, Karnataka Bank, Glenmark Pharma, Adani Power and Aditya Birla Nuvo while rollover activity stayed marginally low in Dabur, Sun TV, Indraprastha Gas, Jindal Steel and BPCL Among index stocks, HDFC Bank, Sesa Sterlite and Reliance are witnessing highs rolls into January series while Infosys, HCL Tech and Hero MotoCorp are witnessing low rollover into the next series Despite VWAP activity, significant open interest is left for settlement in the December series. Nifty futures rollover is seen relatively low at 66% compared to the three month average of 71%. However, the Nifty is starting the January series with more than 20.8 million shares along with the highest ever seen roll spread of 103 points. Higher Nifty premium does not bode well for upside momentum. Hence, future premium is likely to come down to normal levels in the next couple of sessions.

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