Banking & Financials may outperform in June series; 8 stocks which saw a long rollover
May series started with a good amount of long positions, but unlike the previous five series, Nifty breached the previous expiry month’s low and corrected in the first fortnight of the series.
The fall was on the back of a long unwinding and we didn’t see any noticeable shorts. However, the index again started rebounding in the second half of the series. However, the index ended the series a tad below the 12000 marks, with a gain of 2.61 percent over the April expiry close. The month gone-by was very volatile for the Indian market as both Bulls and Bears have fought for their dominance.
The volatility index (India VIX) also rallied to 30 levels due to uncertainties related to the outcome of general elections. The rally seen in the last few days was supported by a good amount of long positions.
The fresh long positions were formed at a low base of open interest and good rollovers indicate that most of the same got carried forward to the June, Highest open interest for June monthly expiry is placed at 11,500 & 11,000 put and 12,500 & 12,000 call options. Going forward, 11,500 - 114,00 would act as strong support for Nifty; while resistance can be seen around 12,500 – 12,600 levels.source- money control
Looking at the overall derivatives activity, we are expecting a continuation in ongoing optimism towards 12,300 – 12,500 in coming weeks. After some falls in April series, BankNifty outperformed the benchmark indices and rallied by 6.68 percent in the May series. The banking index also corrected in the first fortnight of May series on the back of long unwinding. For June series, support for BankNifty is placed in the zone of 30,300 - 30,100 level. While some resistance can be seen around 32,500 – 32,600 levels.
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