India Traders Roll Over More Nifty Futures Wagers Before ExpirySantanu Chakraborty
Indian traders are extending a greater proportion of bets on CNX Nifty Index futures to December before the current-month contracts expire.
Traders rolled over 72 percent of November futures as of 4:16 p.m. in Mumbai, compared with the three-month average of 67 percent the day of expiration, data compiled by Bloomberg show. The India VIX, a gauge of protection against stock-market losses using options, fell 1.9 percent. The 50-stock Nifty Index added 0.2 percent to 8,494.20.
“The expiry and the rollovers is positive for now,” Jitendra Panda, chief executive officer at Kolkata-based Peerless Securities Ltd., said by phone. “ We are advising buying 8,600 calls.”
The Nifty is poised for a seventh straight month of gains as declining oil costs helped send consumer inflation below Reserve Bank of India Governor Raghuram Rajan’s 6 percent goal. Credit Agricole CIB and Capital Economics Ltd. predict the central bank will lower the benchmark interest rate at its next policy review on Dec. 2.
The Nifty has increased 35 percent this year, the best performer among the world’s 40 largest markets. Nifty futures for November delivery rose to 8,495.70, while the December contract gained to 8,549.75. Indian derivatives expire on the last Thursday of every month.