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Market had a fabulous run in the previous three consecutive series. However, the January series concluded with some roller coaster move by shedding more than a percent. It was certainly a historical one as we saw Nifty hitting fresh record highs of 14753.55 in the latter half. Unfortunately markets failed to keep up the same momentum as the index corrected from the life time highs and eventually concluded the inaugural series of the calendar year 2021 tad below the psychological mark of 14000. The banking index too finally surpassed the previous life time high of 23613.10 seen a year back. Due to sell-off seen towards the end of the series, the BankNifty ended 3% lower to previous series close. During the series, we saw decent profit booking along with few shorts in Nifty futures; whereas, in case of banking index meaningful shorts were added throughout the series. Rollovers in Nifty stood at 77%, which is in line with the three month averages.

But, the open interest plunged 20% series on series which indicates we are beginning February series with a lower base. Now, the BankNifty rollover may appear to be low if compared to the averages but if open interest is considered, it suggests that decent amount of shorts have been rolled-over to next series. As far as FIIs activity is concerned, they preferred rolling over their shorts formed during last series.

Hence, their index futures ‘Long Short Ratio’ plunged from 76% to 62% series on series. In stock futures segment, they lightened up both long and short trades. At current juncture, 14000 call and 13500 puts are attracting traders attention. Considering the upcoming event of Union Budget, it is advisable to stay light and pick quality stock in case of any sharp fall post the event.

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