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Traders roll over fewer positions to November F&O series | Economic Times

Mumbai: Jittery traders carried forward fewer futures positions to the November series on expiry of the October contracts on Thursday amid uncertainty over the outcome of the US Presidential election next week and concerns over the second wave of coronavirus-led restrictions in Europe. Derivative analysts said the bullish bias is intact as the index has gained 8 per cent in the October series but some positions were liquidated ahead of expiry as wild market swings are expected around the US elections on November 3.Nifty rollovers to the November series stood at 72 per cent on provisional basis, lower than the three-month average of 76 per cent. The Bank Nifty gained 18 per cent in the October series. The bank index has seen rollover of around 80 per cent on provisional basis, slightly higher than the three-month average of 77.3 per cent. “Outlook is cautious because of US elections and the second wave of Covid in some countries. Writing among puts has shifted lower to 11,200 strike against 11,500 strike earlier,” said Rajesh Palviya, head of technical and derivatives at ICICI Securities. “Many of the stocks are seeing profit booking immediately after the results... they are not able to sustain their rallies after posting good numbers.” Analysts have also predicted a wide range for the index between 11,200 and 12,200. Options data in the new series is also scattered across various strikes, with maximum open interest among puts at 11,000 followed by 11,500 strike. Among call options, maximum call OI is at 12,000 followed by 12,500 strike. Some in the market believe that re-election of Donald Trump as US President would mean continuity in policies and he is considered to be more market-friendly. There are others who believed that it will not matter who is elected and that post election market direction hinges on the stimulus announcement in the US. “Nifty has to cross and hold above 11,750-11,777 zone for a bounce towards 12,020 then 12,200 zones ahead of festive season while on the downside major support exists at 11,500 then 11,333 zones,” said Chandan Taparia, derivatives analyst at Motilal Oswal.

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