Short rollovers suggest limited upside
“We started-off the week on a strong note, as point out by the global bourses. However, these gains were short lived since fresh selling got attracted thereafter and eventually we witnessed a range-bound move to conclude the session with gains of 0.72%.
As far as today’s Nifty options activity is concerned, apart from some build-up in 10100 strike; we could hardly see any relevant activity in call option. On the other side, 9700-9900 put options added good amount of fresh positions. Maximum concentration for current series stood at 10000 call and 9700 put options.
October series began with high rollovers; wherein, majority of the position that got rolled were on short side. If we glance at stronger hands activity, they continue their selling streak in cash market segment. At the same time, their index futures ‘Long Short ratio’ is currently at 55.78% which is lowest in last 10 series during start of new series. Taking into consideration the above F&O activity, we believe 9900-9950 is a strong hurdle for index now, any upmove towards these levels shall be an opportunity to go short.”