Domestic equity benchmarks saw significant gains in the June derivatives (futures and options) series with the Nifty index adding 1,555.9 points - or 6.9 per cent - to both cross and close above the psychologically important 24,000 mark on Thursday, June 27. The leaner, 30-scrip Sensex index gained 5,357.6 points - or 7.3 per cent - during this period. As per the JM Financial report, the series turned out to be the best in the current calendar year fueled by the BJP-led coalition forming the government for the third straight term.

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The rollovers have been strong at 76.2 per cent.  A rollover in the F&O market is the process of moving a futures contract from one month to the next, usually near the end of the current month's contract. This involves closing a position in one contract and opening a similar position in another contract with a later expiration date

Here’s what to expect in July F&O series 

Historically, July series has been favourable for the Indian markets, with 8 of 10 July series in the past delivering good returns.

Zee Business Managing Editor Anil Singhvi said the concern this time around is FIIs have a remarkably high index long position. In comparison to the previous series, the new July series will begin with 82 per cent FII index long position.  There could be profit booking by FIIs at a higher level who will lighten their positions in the index going ahead.

For the Bank Nifty, after the second-best streak in the previous June series with gains of a significant 4,370 points, Singhvi said that FIIs are maintaining excessively high long positions in the Bank Nifty futures at 67 per cent. Also, rollovers have increased to 70.7 per cent from just 3 per cent.

Historically, Bank Nifty has been positive in 7 out of the last 10 series in July.