IGI Logo

Nifty stayed beneath 21500, BankNifty slipped below 45k; higher implied vols’ to keep mkts choppy

Continuing the prior month’s rally, US key indices sustained at higher levels. Reclaiming levels of 103, Dollar index snapped its multi-month losing streak. US Gold saw no meaningful upside, save for managing to stay above levels of 2000/oz. Brent Crude oil gradually trended up.

January series Highlights a) After rallying ~16% in the past two series, Nifty took a pause (down 2% eoe) b) Erasing prior month’s gain, BankNifty was the major dragger (down 7.5% eoe) although PSUbank index settled in the green for the straight third series. C) Media index was a top loser (down 10%) while Realty and Oil & Gas indices out-performed (up 6%) d) Infrastructure index remained steady (up ~5%). Ahead of the interim budget, sectoral indices witnessed a mixed trend

Rollovers for Nifty/Bank-Nifty stood at 81% (~1.29cr OI)/77% (~37 lakh OI) vs 80% (~1.38cr OI)/81% (~22.6 lakh OI) of the prior month. Nifty’ open interest base has shrunk 7%, while BankNifty OI base soared by 63% eoe. At the start of the month, FIIs’ index futures long/short ratio was above 2x which is now 0.28x.

Exhibit 1: Sector-wise rollovers (%)

Exhibit 2: Sector wise open interest change (%)

Please refer disclaimer at https://yesinvest.in/privacy_policy_disclaimers
SEBI Registration number is INZ000185632

Above views are of the author and not of the website kindly read disclaime