In its derivatives monthly rollover report, domestic brokerage firm Religare Broking revealed that Nifty 50 closed above 24,400 after volume weighted average price (VWAP)- based buying activity was witnessed throughout the session. Religare highlighted that at 97 per cent, realty sector witnessed the highest rollover in the July series. Whereas at 86 per cent, the media sector witnessed the lowest rollover.
Nifty, Bank Nifty derivates summary
Nifty futures has rolled at around 70 per cent compared to 72 per cent which is slightly higher with respect to the previous series. The Open Interest (OI) for the new contract is lower by around 14 lakhs with respect to the last month contract implying less long positions.
Bank Nifty futures have seen the rollovers of 62 per cent however its expiry is still a week away. Bank Nifty futures have seen an addition of open interest of around five lakh with respect to the last month. This might be because of the higher short positions in Bank Nifty during the July expiry, according to Religare Broking.
Which stocks to invest in August series as per Religare Broking?
Mahanagar Gas Ltd or MGL (CMP : 1,770):
The stock gained over 16 per cent in price with OI addition of 67 per cent. Rollovers were at par with respect to the previous series at 87 per cent. ‘’On technical front, the stock is also holding above its key MAs with some rise in volumes. Going Forward, we believe it may continue to do well and may heed towards 1,820-1,840 in near term,” said Religare Broking.
SBI Cards and Payment Services Ltd (CMP: ₹721)
The stock lost marginally in July series but added substantial OI to the tune of 35 per cent. ‘’Rollovers were also higher at 98 per cent compared to previously. With stock showing some signs of accumulation, we believe it may see good traction in the August series. One should be positively biased keeping a stop at 685,” said the brokerage.
Punjab National Bank (CMP: ₹117.5)
The stock ended the series being flattish with significant OI addition. With rolls at 96 per cent which picked up from 65 per cent previously, the stock may see reversal. ‘’With supports at 112-113, we believe stock may do well and test 130 in the August series,” said Religare Broking.
SRF(CMP : ₹2,405):
The stock did not do anything but added 25 per cent in its OI. ‘’With decent cash based accumulation in last three days of the series. we believe stock may see fireworks in the August month. One should be aligned with that keeping a stop at 2,280,” said the brokerage.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.