Top 10 stocks which saw rollover of short positions to September series

The rollover in Nifty for September series stood at 68.76 percent, which was below its quarterly average of 75.34 percent.

The August series started with good amount of short rollovers in many stocks and the impact of the same was visible from the start of the series.

The benchmark indices continued their selling streak of July series and started correcting from initial days of the August series.

The fall was very sharp with Nifty breaching its psychological level of 11,000 and registering a new 6-month low of 10,637.

However, due to some recovery in the concluded week, the Nifty trimmed-off some of its intra-month losses and eventually ended the August series with a loss of 2.70 percent over its July expiry close.

The fall of last month was supported by good amount of short positions, but most of these positions was not rolled to September series as the open interest (OI) remained flat on a month-on-month basis.

The rollover in Nifty for September series stood at 68.76 percent, which was below its quarterly average of 75.34 percent. The fall of August series was mainly led by selling pressure from foreign institutional investors (FIIs) as, except three trading sessions, they were the net seller in the cash market segment.

They cumulatively sold equities worth Rs 20,341 crores in August series. They also did good amount of shorting in the index futures and as a result, their ‘Long Short Ratio’ in index futures has fallen to 31 percent.

On the other hands, domestic institutional investors (DIIs) remained net buyers in equities on all trading sessions of August series and cumulatively bought equities to the tune of Rs. 26,259 crores.

The highest open interest for September monthly expiry is placed at 11,700 & 11,200 call and 11,000, and 10,600 put options.

Going forward, 10,550-10,500 would act as strong support for the Nifty while immediate resistance can be seen around 11,250 and 11,500 levels.

Going forward, markets are likely to remain on the edge taking cues from global and domestic factors. Since overall positions are light in the Nifty, fresh build-up in the coming few days will decide the trend for September series.

The banking index underperformed the benchmark indices for the second consecutive month and concluded the August series with a loss of around 6 percent over its July expiry’s close.

In the recent fall, we witnessed good amount of fresh shorting in the Bank Nifty and some of these positions got rolled to the coming month as the open interest has increased by 8.35 percent on expiry to expiry basis.

In line with the Nifty, the rollover in the banking index also remained on the lower side. From August series, 66.41 percent positions in Bank Nifty got rolled to September series, which is lower than its quarterly average of 80.15 percent.

All the banking counters ended the August series in the red and we had seen good amount of short positions getting rolled in the banking counters like YES Bank, SBI, RBL Bank, Bank of Baroda, Union Bank of India, and Federal Bank, etc.

Technically, the immediate support for Bank Nifty is placed at 26,500, while resistance can be seen around 28,800-29,000.

On stocks front, we continued to see carnage in many frontline and midcap counters in August series as well. In the last series, few stocks which have seen long build-up and these longs got rolled to September series include names like Berger Paint, Tata Global, Marico, Nestle India, HCL Tech, Asian Paint, etc.

While stocks which added huge shorts in August series and the same got rolled to September series include names like Tata Steel, Tata Motors DVR, RBL Bank, Jindal Steel, Dish TV, Tata Motors, LIC Housing Finance, SBI, BHEL, and Grasim, etc.

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