How will the June series pan out? Amar Ambani, Head of Research at IIFL, expects the Nifty to trade in the 5,900-6,400 range. “Long rollovers in Nifty paved way for a positive finish to the May series. The Bank Nifty respected its support at 12,680, which is also its weighted average price. A VWAP-based buying in June futures at a premium implies positive sentiment.”
Volume weighted average price is ratio of the value traded to total volumes over a particular time horizon.
The indices ended Thursday’s lackluster F&O expiry session slightly off the day’s high.
The first half was absolutely bleak with the benchmark indices stuck in a tight range. Weak global cues resulted in the market here trading in sync with its Asian peers.
However, action picked up in the second half of trade, especially the last hour, with traders rolling over their long positions.
For the May series, the Nifty has recorded a month-on-month gain of 3.5% squashing the age old adage of ‘sell in May and go away.’
Banking stocks, which have a weightage of around 25% on the Nifty, came under selling pressure in trade today. Realty, metals, and oil and gas stocks were the other major laggards.
However, auto, FMCG and select power stocks pulled the indices into the positive realm towards the end of trade.
The Sensex closed Thursday at 20,215, up 68 points, while the Nifty shut shop up 20 points at 6,124