However, Bank Nifty rollovers dipped to 65.34%, down from 69.3% in the previous expiry and below both the three-month and six-month averages. The broader market rollover also slipped to 70%, below the three-month average of 77.7% and the six-month average of 77.9%, reflecting mixed sentiment.
Option data suggests capped upside
Open interest data for the June series indicates a strong Call concentration at the 24,800 and 25,000 strike prices, while the highest Put OI is at 24,500, followed by 24,200. This setup implies a potential trading range of 24,200–25,100 for the Nifty, according to Axis Securities.
Stocks with high and low rollover trends
Among individual stocks, Nestle India, JSW Steel, Crompton Greaves Consumer Electricals, Petronet LNG, and Hindustan Copper recorded the highest rollover activity, suggesting continued bullish sentiment. On the other hand, Aditya Birla Fashion and Retail, Chambal Fertilisers and Chemicals, RBL Bank, Tata Communications, and Computer Age Management Services (CAMS) witnessed the lowest rollovers, indicating potential investor caution or repositioning, the brokerage noted.
Notably, Siemens, Persistent Systems, Delhivery, LTIMindtree, and ITC showed higher rollovers compared to the previous expiry, while names like Apollo Tyres, Ramco Cements, and Cyient saw a decline in roll activity.
Sectoral rotation in play
Capital goods emerged as the strongest sector with a 27.8% rise in rollovers compared to the previous expiry, while automobile stocks witnessed a sharp 40.6% decline, the worst among all sectors.
Other sectors that saw notable weakness included telecom, with a 24.1% fall in rollovers, cement with a 20.1% drop, and chemicals with a 19.7% decline. This divergence points to ongoing sectoral rotation, with traders shifting focus away from autos and select commodities into capital-intensive names.
Market outlook remains range-bound
While the Nifty closed the May series with gains, the mixed rollover picture and reduced participation in Bank Nifty suggest that traders remain wary of macro and election-related volatility. Rollover costs have also risen slightly, adding to near-term caution, the brokerage said.
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Overall, while select sectors and stocks indicate a bullish bias, the broader trend suggests that the market could remain in a consolidation phase, with 24,500 as a key support level for the Nifty and 25,000 acting as resistance in the short term.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
