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September series turned out to be the historical one as we finally saw the index breaching the much awaited milestone of 17000. This was just a beginning as the real rally was about to unfold. The Nifty first went on to reach the 17500 mark and then marched towards the magical figure of 18000 which it eventually missed by a small margin. Despite some hiccups in the latter half of the series, we managed to conclude the September series with remarkable gains of nearly 6%.

Now let’s take a quick glance at the F&O activities. We did see majority of long formation in Nifty as well as BankNifty during the series. In case of banking index, good amount of these positions have been rolled-over to October series but for Nifty most of the positions are out of the system. The Rollovers for Nifty stood at 75% which is below the three month average of 81%. For BankNifty, the rollovers stood at 83% which is above the three month average of 81%. Stronger hands preferred lightening up their longs and carrying bearish bets in October series, this certainly doesn’t bode well for Bulls. Now as a result, their index futures ‘Long Short Ratio’ plunged from 65% to 57%. However, they were net buyers in equities to the tune of Rs. 914 crores in September month. The development seen in derivatives segment hints limited upside going forward and hence we would advocate traders exiting longs and continue with stock specific trades for a time being.

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