Traders carried forward bearish positions to the July derivatives series amid mounting concerns that aggressive policies of central banks, aimed at reining in inflation, will hurt the global economy, Economic Times reported.
Nifty rollovers stood at 75%, lower than the three-month average and market-wide rollovers at 92% were in line with the three-month average, said, analysts.
The Rollover is the process of transferring from a front-month contract that is about to expire to another contract in a later month, — in other words carrying forward your future positions.
The Nifty has fallen 2.4% in the June series, logging a third consecutive loss, amid persistent selling by foreign investors. There is a positive bias in FMCG and auto but short side bias in banks and metals said, analysts.
The indices also clocked the worst quarterly performance since the March quarter of 2020, both clocking a loss of around 9.5% during the period.
Stocks have been subject to heavy selling by overseas investors amid rate hikes by the US Federal Reserve and Mint Road, and an unabated surge in commodity prices following the Ukraine-Russia war.
Experts said the effect of these broader macro-economic woes will be felt in the quarterly earnings performances of companies.
“People are carrying forward short positions. 15200 will be good support for the Nifty and if that is broken then the Nifty may go to 14500 and on the higher side, 16250 will be the cap for the series unless FPIs return to the market,” said Abhilash Pagaria, head of Edelweiss Alternative and Quantitative Research.
Key equity indices the Sensex and the Nifty ended flat on June 30. Sensex closed 8 points, or 0.02 per cent, lower at 53,018.94 while Nifty ended 19 points, or 0.12 percent, lower at 15,780.25.
Among the sectoral indices, BSE Metal fell 2.18 percent, ending as the top sectoral laggard. BSE Auto, Basic Materials and Realty ended 1.25 percent, 1.20 percent and 1.17 percent lower respectively.
FPIs sold Indian shares worth 1,138 crore on Thursday and domestic institutional investors bought shares worth ₹1,378 crore, NSE data showed.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
