As of Wednesday, 45 per cent of Nifty future positions have been rolled over compared to a three month average of 57 per cent. Although the overall percentage of rollover is less, but higher rollovers on absolute basis along with high roll cost indicates market participants are bullish for April series, dealers say in a report.
Among Nifty stocks, 47 per cent of outstanding future position in Axis Bank has been rolled over to next month.
52 per cent of open positions in BPCL have been rolled over to April series. Open interest in March series was 2.1 million which is 1.4 times average daily volume in cash market. Such a high open interest with an increase in under lying price is positive for the counter.
46 per cent of L&T Finance's total open positions have been rolled over to April series. The total open interest in March futures was at 18 million shares which is 2.3 times of average daily volume.
K Subramanyam of Asit C. Mehta advised investors to buy Nifty April futures at 6,638 along with a short position in 6,700 strike call at 109 with a stop-loss for the future at 6,550 for a target of 6,710.
(In this call, total amount at risk will be Rs 4,400 and maximum profit potential is Rs 8,550)
Mr Subramanyam's F&O strategy includes a Bull Spread on Tata Motors. Buy Rs 400 strike call at Rs 18 and sell Rs 430 strike call at Rs 7 for a target of Rs 22 and stop-loss of Rs 5.
(Tata Motors trades in a lot size of 1000 so the total cost will be Rs 11,000 and the maximum profit potential is Rs 19,000)
Mr Subramanyam also advises a Bull Spread on Wipro. Buy Rs. 550 strike call at Rs. 20 and sell Rs. 580 strike call at Rs.10 for a target of Rs 22 and stop-loss of Rs.5.
(Wipro trades in a lot size of 500 so the cost will be Rs 5,000 and maximum profit potential will be Rs 10,000).