BackTraders rollover fewer Nifty futures wagers before expiry
Traders rolled over 52% of Oct futures, compared with the 3-month average of 57% one day prior to expiration
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Mumbai: Indian traders are extending a smaller proportion of wagers on CNX Nifty Index futures to November a day before the current month contracts expire.
Traders rolled over 52% of October futures as of 4:05 pm in Mumbai, compared with the three-month average of 57% one day prior to expiration, data compiled by Bloomberg show. The India VIX index, a gauge of protection against stock market losses using options, fell 2.4%. The 50-stock Nifty Index added 0.8% to 8,090.45.
“Some short positions may not be rolled over and are likely to expire tomorrow," Paras Bothra, vice-president for equity research with Ashika Stock Broking Ltd. in Mumbai, said by phone. “We expect the Nifty to trend higher in the next series."
The Nifty index is poised for a sixth straight month of gains in October after Prime Minister Narendra Modi ended price controls on diesel and raised natural gas tariffs. His Bharatiya Janata Party (BJP) came first in two state elections, fuelling optimism the government may push ahead with tougher reforms, including opening up further to foreign investment and introducing a goods and services tax (GST).
The Nifty has risen 28% this year, the best performer among the world’s 10 largest markets. Nifty futures for October delivery gained to 8,091.45, while the November contract increased to 8,136.20. Indian derivatives expire on the last Thursday of every month. Bloomberg
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