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    Fatigue? Dalal Street rolls over fewer bullish bets to Aug series

    Synopsis

    The Bank Nifty underperformed the index on concerns over the impact of coronavirus pandemic on the economy and businesses. The Bank Nifty gained 0.65 per cent in the July series and provisionally saw rollovers of 63.5 per cent compared to 80.6 per cent in the June series and three-month average of 81.1 per cent.

    NiftyGetty Images
    The Bank Nifty underperformed the index on concerns over the impact of coronavirus pandemic on the economy and businesses.
    Mumbai: Traders carried forward fewer bullish bets to the August derivatives series on expiry of July contracts on Thursday on growing worries about fatigue in the market after the near 50 per cent uninterrupted rally since late March. Analysts said bullish positions in heavyweights such as Reliance Industries and large-cap technology companies could push the Nifty higher while banks could put a cap on gains.

    Provisionally, Nifty futures rollovers stood at 72 per cent, lower than the three-month average of 75.3 per cent and June rollover figure of 79 per cent.

    “Overall, we believe open interest position is intact but even after the market move longs are not increasing, indicating some sort of consolidation or profit booking decline before starting the next leg of rally,” said Chandan Taparia, derivative analyst at Motilal Oswal Financial Services. “Failure to breakout above 11,300 and sustained selling pressure at higher zones indicate short-term profit booking cannot be ruled out.”

    The Bank Nifty underperformed the index on concerns over the impact of coronavirus pandemic on the economy and businesses. The Bank Nifty gained 0.65 per cent in the July series and provisionally saw rollovers of 63.5 per cent compared to 80.6 per cent in the June series and three-month average of 81.1 per cent.

    Even though the Bank Nifty weakened, the Nifty reclaimed the 11,000 milestone during the July series mainly due to Reliance Industries which gained 22.7 per cent during the period on the back of stake sale in Jio Platforms. Some technology stocks also surged after reporting better-than-expected earnings for the June quarter. In the past few sessions, the market has, however, failed to sustain at higher levels.
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    “Fresh triggers are needed... the rally appears to have tired in the last few sessions. Higher PCR also suggested that recently,” said Rajesh Palviya, head of technicals and derivatives at Axis Securities. Amit Gupta, head of derivatives at ICICIdirect, said the expiry week saw formation of short positions in the index futures for August expiry, which led to the futures slipping into a discount.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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