Bank Nifty, Nifty rollover data suggests aggressive long bets for April series

Nifty and Bank Nifty rollover D-1 (one day to expiry) data shows longer bets are building up with a rise in rollover costs. Rollovers to the April series of the Nifty were at 62 percent at a roll cost of 0.7, both lower than the 68 percent rollover at roll cost of 1 in the previous series.

Looking at the data, Arun Kumar Mantri-Founder of Mantri Finmart, said,  “The rollovers in Bank Nifty are very strong and are around more than 80 percent, indicating bullish bets are taken over for the next series as we are now approaching 47,300 levels on the spot. The index is looking strong with two of the major contributors ICICI Bank and HDFC Bank leading the gains from the front.”

The index is expected to surge towards 47,700-48,000 in the short term, with 46,600 remaining the strong support zone, he added. “We expect Bank Nifty to surge towards the 48,500 mark in the April series, with 46,500 serving as a good support zone for the short term period.”

Soni Patnaik, Assistant Vice President of Derivative Research at JM Financial, said, the Nifty’s expected expiry range is 22,050-22,250/300. A close above 22,200 on March 28 can see the benchmark index retest its all-time high and move further upside. The crucial support is at 22,000 for the monthly closing.

Bank Nifty’s crucial support is at 46,000 on a closing basis, with immediate resistance at 47,000 followed by the crucial resistance of 47,500/48,000, she said. “Any move above this can lead Bank Nifty towards the 49,500/50,000 mark. Aggressive rollovers in Bank Nifty suggest a one-sided directional move expected in the April series.”

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