Informist, Wednesday, Sep 29, 2021

By Vidya Sreedhar

MUMBAI – The rollover positions to the October futures of Nifty 50 have been lower than average, indicating that the bullishness among traders has somewhat waned after a stellar run for two consecutive series.

The sharp rise in crude oil prices, rising US bond yields, and worry over inflation are likely to have been the reasons restraining investors from aggressively rolling over long positions to the next series.      

The September derivative series has been the best ever for Nifty 50 this year, as it has risen 6.5%, following the

5% gains in the August series.   

"The monthly F&O expiry day (Thursday) could be interesting, as the market is showing some uncertainty and rising VIX levels could lead to some higher volatility," said Ruchit Jain, senior analyst technicals and derivatives and Angel Broking said. 

The level of 17575 for Nifty 50 would be a crucial support and if this is breached, then some deeper price-wise

correction can be seen in the coming days, Jain said. 

Amid the prevailing uncertainty, Jain recommends investors to continue to trade with a sector or stock-specific

approach and avoid any aggressive positions. 

Today, Nifty 50 fell for the second straight session and hit a low of 17608.15 points, but it managed to recoup

most of the losses and settle well above the 17700-mark at 17711.30 points. The weak sentiment saw India VIX hitting a four-month high of 19.4350 points during the day today. 

While Nifty 50 struggled to move higher, stocks in the power sector were fully charged up as they played catch-up after being underperformers in the recent bull run. 

Shares of Tata Power scaled a lifetime high while those of NTPC rose to their highest levels in two years. The rollover of positions to the October futures across stocks in the power sector have been over 50%, suggesting that traders expect the sector to sustain gains.          

-–Nifty 50 Sep ended at 17710.35, down 37.85 points; 0.9-point discount to spot index

-–Nifty 50 Oct ended at 17741.00, down 35.70 points; 29.7-point premium to spot index

-–Nifty 50 Nov ended at 17775.00, down 39.50 points; 63.7-point premium to spot index

Total turnover in the futures and options segment of the NSE was 67.9 trln rupees today compared with 73.2 trln rupees on Tuesday.  

The turnover in index options was 62.4 trln rupees compared with 67 trln rupees in the previous session. The total premium turnover of index and stock options was 288 bln rupees compared with 343 bln rupees on Tuesday. 

Reliance Industries, Bharti Airtel, ICICI Bank, HDFC Bank, Tata Steel, Infosys, Tata Power, Sun Pharmaceutical Industries, HDFC Asset Management Co, and Coal India were the other most actively traded stocks today.  End

Edited by Maheswaran Parameswaran

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