Nifty Futures Analyzed
The Nifty futures contracts have recently dropped about 2.5%, just like the main stock market indexes. Despite this drop, many traders are now betting on the February market, which is when the government will announce its budget. This is shown by a big increase in traders moving their investments from the January contracts to the February contracts.
Key Points
- Traders are shifting investments to the February Nifty contracts.
- 41.7% of Nifty futures rolled over – much higher than recent averages.
- Bank Nifty rollovers also jumped to 41.4%, showing strong interest.
- IT, infrastructure, and auto sectors saw high rollover activity.
- Indian Bank, SAIL, and TCS were among the most traded stocks.
- Axis Securities predicts a Nifty expiry range of 25,000 – 25,800.
Understanding the Rollovers
Rollovers are when traders change the month their investments are based on. The January Nifty futures contracts will end on Tuesday. Monday is a holiday, so there will be no trading that day.
Which Stocks are Trading?
Some stocks that traders are focusing on include Indian Bank, SAIL, Uno Minda, TCS, KEI Industries, Wipro, Patanjali Foods, Oil India, and RVNL. Others, like APL Apollo Tubes and ITC, are seeing fewer investments moving into them.
What Axis Securities Says
Axis Securities analyzed the data and believes that the Nifty is likely to trade between 25,000 and 25,800 when the January contracts expire. They point out a lot of traders are betting on the 25,000 Put and 25,800 Call options.
Investing in the stock market always carries risk, and it’s important to consult with a financial advisor before making any decisions.
