Mumbai: Traders were cautious about carrying forward their bullish bets to the April F&O series on expiry of the March contracts on Thursday as the Nifty closed at a record high, raising concerns that the market may be overbought.Analysts expect the pace of upsides to be moderate hereon in the absence of triggers for the market.
The Nifty futures rollover of positions to the April Series from the March was at 65% compared to the average of 71% in the last three-month. The Sensex ended up 115.99 points, or 0.4%, and the Nifty g ained 29.95 points to 9173.75 on Thursday helped by volume-weighted average price buying in HDFC Bank. Besides Nifty, the Nifty Bank and Nifty Midcap 100 index also closed at record highs.
Analysts said traders were willing to pay lesser to roll over the positions, which indicates sentiment is cautious after the 12% rally in benchmark indices so far this year “The roll cost fell to 45 bps (basis points) during the week and recovered to 50 bps on Thursday, but was lower than the average of 5560 bps in the last few expiries,“ said Yogesh Radke, head of quantitative research at Edelweiss Securities. “The long side aggression was not seen as investors are cautious at the current level“.
The market-wide rollovers stood at 76% compared to the average rollover of 86% in the last three expiries.