Nifty will be in a broad range of 4800-5200 in October: Karun Mutha, HSBC InvestDirect

Karun Mutha, Head Advisory, HSBC InvestDirect in an interview with ET Now talks about his outlook for the Nifty in the month of October.

What is your Nifty number for the day and what is your Nifty range for the month of October?

Broadly what we have seen on the expiry happening yesterday was that the roll overs were not that encouraging. We have seen rollovers on Nifty at around 41% compared to an average of 51%. Here we observe that the aggressive long rollovers did not really happen. The markets which were actually trending downward, and then suddenly we saw huge volatility and the markets sprang upwards. We had seen lot of long rollovers getting only aggressive over the last few trading sessions before the expiry. That is why you see the Nifty actually the current month going into a steep discount and the next month still going at par or set a slight premium.

The long rollovers got aggressive when they saw the markets reviving over the last few trading sessions. For the month of October we still assume that the markets are going to be in a broad range of 4800 to 5200. As we see again the October month the 4800 strikes and the 5200 strikes, on lower side the puts and the higher side the calls getting aggressive in terms of the strong open interest built ups.

We do expect the market to be in broadly in this range as we see the volatility index till quoting at a higher level of 31% and it has been doing that since all September.

We expect the markets to be more volatile in the coming trading sessions but let see if it cools down as of today at least we have a weekend to go. There should be some profit booking happening on yesterday's carryover position and we will see a slighr slowdown at least on the Nifty volatility and how it pans out the next week we will wait and watch for the trading sessions to go ahead.