Nifty rollovers at 38% tad lower than past three rollovers’ average

Expiry of derivative contracts of July series is on July 27, 2017. As the expiry comes closer, market starts to analyse the rollover data for derivative contracts. The market wide rollover of derivative contracts stood at 37% till Tuesday’s trading session, which was a marginally lower than the average of past three derivative series rollovers of 38%.
 
Nifty rollovers stood at 38%, which were lower compared to the average of past three derivative series rollovers of 43%. Nifty rollover data may suggest weakness for the index in the near term. 

Investors carry forward their existing bets on the market by rollovers. Generally, rollover figures of current derivative contracts are compared with the average of past three series rollover numbers. If rollover is lower than average three series rollovers it indicates either uncertainty floating in the market or unwinding of current trend.
 
On the other hand, if rollover is higher than the average three series rollovers, it may indicate that the traders are building more positions on the current trend and believe that the trend may continue further. Meanwhile, Nifty closed at 9,964 level, down by 1.85 points, while Sensex closed at 32,228 level, down by 17 points on Tuesday, erasing the day’s gains on Tuesday.