F&O Rollovers: High F&O rollovers in these stocks signal contrarian bets

Voltas

CMP: Rs 1,322
Change in Open Interest in March Series:21%
Change in Price in March Series: 0.71%After having dropped 32% from the all-time high, stock futures of the consumer goods manufacturer are seeing a bullish build-up. “The stock is now showing signs of a gradual recovery and has reclaimed its short-term moving average, the 20-day EMA (exponential moving average), in the last trading session. The indicators suggest that the ongoing recovery is likely to gain further strength,” said Ajit Mishra, senior vice president of research at Religare Broking. Mishra recommends buying Voltas March Futures in the range of Rs 1,295-1,305 with stop loss at Rs 1,240 for a potential target of Rs 1,425.

HDFC Bank
CMP: Rs 1,730
Change in Open Interest in March Series:7%
Change in Price in March Series:1.73%

HDFC Bank shares have outperformed the benchmark Nifty in the past month, pointing to resilience in a weak market. “The bank has seen a fresh buildup of long positions, holding strength even after the weakness in the broader market.

It formed a bullish price pattern, and put writing is also seen, so it could head towards Rs 1,835,” said Chandan Taparia, head of technical and derivatives research at Motilal Oswal Financial Services. Taparia recommends buying at current levels, with a stop loss of Rs 1,680.

MCX (India)
CMP: Rs 4,981.5
Change in Open Interest in March Series:10%
Change in Price in March Series:-7.27%

MCX has weakened amid the broader weakness in shares of capital marketoriented companies. Religare Broking’s Mishra said the stock has now slipped below the support of its long-term moving average, the 200-day EMA.

“The bearish chart pattern, coupled with a rise in open interest, signals the potential for further downside,” he said. He suggests traders sell MCX March Futures in the range of Rs 5,000-5,020 with stop loss at Rs 5,260 for the potential target of Rs 4,550.

Coal India
CMP: Rs 368.5
Change in Open Interest in March Series:10%
Change in price in March Series:1.28%

Coal India shares, which have been weakening since their high in August last year, may see some signs of recovery. “The stock has bottomed out and is now turning upwards after support on daily and weekly scale. It is moving up after a long time so the risk-reward ratio is favourable for traders,” said Taparia. He suggests buying with a stop loss of Rs 358, for a target of Rs 395.