Bulls back in reckoning, Nifty rollovers at 3-month average

Indian shares rallied for the fourth straight session on Friday, with benchmark indices logging its best weekly gains in 3-months, Nifty ended 87 points, or 1%, higher to close at 8,156. Traders are targeting 8,300 level for the Nifty in the immediate term, while they have aggressively rolled or carried their long positions to the June series. Technically, markets are now more favouring the bulls, said analysts. Expectations of good monsoon and recovery in corporate earnings have lifted investor sentiments.

Nifty rollover or carry forward of trading positions to the June series were at 73%, which is almost in line to 3-month average of 74%, while total market rollovers were seen at 80%, which is higher compared to 3-month average rollover of 77%. The total market futures open interest or outstanding position for the June series stands higher at Rs 77,200 crore, against Rs 74,700 crore seen at the start of the May series, which suggest addition of fresh long positions. Traders are also pricing in negative news flow from global front in the next month that includes possible interest rate increase by the US Fed in June 14-15 policy meeting, and Brexit referendum on June 23.