Market Snapshot for April Series –

 April series ended with marginal negative of 0.12%

As expected April series followed trend of February series, settled in negative territory with marginal loss of 6.3 points or 0.12% to 5,254 and 13 out of 22 trading sessions FIIs were net buyers to the tune of Rs 6,637 crore.

Rollover– Overall rollover cost for April series was negative 

By observing lower rollover in Nifty by 1081bps as compared to market wide rollover indicates traders are more confident of individual stock movement than Index. As compared to 6 month average, Nifty rollover was higher by 600bps with larger negative cost of ~17bps in today sessions. Less expired contract, higher rollover than 6 month average and marginal overall negative rollover cost indicates May series to be volatile with upward basis.  

Outlook for May Series- Earn ROI of 13.3% by selling 5,400 CE & 5,200 PE of May Series

We expect Nifty May series to trade and settle within range of 5,538-5,062 by observing the concentration in Call & Put with their premium. We would recommend traders to sell 5,400 CE & 5,200 PE of May series and hold till expiry. Expected ROI on above strategy would be ~13.3% at an investment of Rs 52,000.  

Sector-wise Rollovers

Highest long Roll: Bullish Signal 

Realty (92.7%), Sugar (91.5%), Cement (91.2 %)

Highest Short Roll: Bearish Signal 

Hotels (87.8%), FMCG (82.3%)

Lowest Rollover

FMCG (82.3%), Technology (78.1%), Capital Goods (75.6%)

Stocks Rollovers (Exhibit 4-6)

Highest long Roll: Bullish Signal

GTLINFRA (95.8%), ULTRACEMCO (95.1%), FINANTECH (94.7%)

Highest Short Roll: Bearish Signal

WELGUJ (94.9%), WELGUJ (94.9%), BRFL (93.8%)

Lowest Rollover

CUMMINSIND (54.4%), NAGARCONST (59.0%), TATAMOTORS (61.9%)

 FIIs and DIIs activity in capital market segment

·         FIIs were net buyers of Rs 90 crore with Gross buyers of Rs 3,889 crore and Gross Sellers of Rs 3,799 crore.

·         DIIs were net buyers of Rs 266 crore with Gross buyers of Rs 1,402 crore and Gross sellers of Rs 1,135 crore.

India VIX

·         Volatility for 29^th April, 2010 close at 21 which is 6.75% lower as compared to previous close, after touching an intraday high of 21.85 and low of 20.3.