Nifty rollovers stood at 73% on a provisional basis, lower than the previous expiry of 75%.
“Thursday’s fall in the market has set a negative undertone. FPIs have heavily shorted index futures in November series,” said Siddarth Bhamre, director-alternative investments and research at InCred Equities. “The market has become a sell-on-rise market. FPIs (foreign portfolio investors) net index futures has become more of short positions than longs.”
India’s benchmark indices dropped with the Nifty and Sensex ending down 1.9%, logging their biggest one-day declines in six months. FPIs net sold shares worth Rs 3,818.51 crore on Thursday.
Rajesh Palviya, head-technicals and derivatives at Axis Securities, said one needs to watch out and see if the Nifty sustains above 18,200. The index closed at 17,857.25 on Thursday.
“If it sustains above 18,200, everything will be back to normal and we may see further gains,” said Palviya.
Derivative analysts said strength in banks will be crucial to prevent a further fall in the market. Futures of some private banks have seen rollover of bullish bets to November even as shares of lenders witnessed a sharp sell-off on Thursday. The Nifty Bank index fell declined 3.3%.
“The immediate support for Nifty is at 17,500 and selective banking names could provide support to the markets in the November series. Big private banks have seen strong rollover with long side bias,” said Abhilash Pagaria, AVP, Edelweiss Alternative Research.
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