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Below are Quote on F&O Expiry by Mr. Deepak Gupta, VP- Derivative Sales, Emkay Global Financial Services

"NSE gives participant wise OI data and they divide the participants into Clients, FIIs, DIIs and Proprietary books. We had highlighted last month that the Clients which are predominantly directional investors, have a net long Open Interest which is the highest in last 3.5 years. This net long futures position by Clients increased further this month inspite of the jitteriness arising because of FED’s statements on inflation and likely timeline for rate hikes. The rolls started with roll spreads being very high (upwards of 60 bps) but gradually dipped as we approached expiry. Inspite of this, the sentiment remains bullish as the Clients have not reduced their long positions. The IT sector was the best performing sector this month in continuation with the quarterly seasonality that the sector has been seeing in the last 3 quarters i.e. the IT stocks outperform the markets in the last month of the quarter and for the 15 days of the month following the quarter. Once the results of the IT heavyweights start coming in, the stocks have shown a tendency to give away the gains irrespective of how the results pan out. The BSE Metals Index was the worst performing sector this month. Noises from China on elevated metals prices, FED’s take on inflation and interest rates and the highly leveraged positions in the stocks led to the correction. Since the positioning by the investors remains bullish, one needs to be careful as any bad news in a particular sector can derail the upmove of the stocks in that sector.”

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