Roll over in Nifty Futures was 71.39 % compared with 56.89% in the month of June…
If highest rollover means investor hoping that Index will continue the Upmove ?,
If lowest Rollover means investor expecting that Index will be correct from current levels ?
Rollover simply tells you how many % traders are carrying forward their positions into the next month from the current month. Rollover data makes sense when one looks at it in conjunction with price.
A high rollover with lower prices indicates that the traders are expecting lower prices going forward hence they are not willing to close their positions in this month.
Likewise a high rollover with higher prices indicates that the traders are expecting higher prices going forward hence they are not willing to close their positions in this month.
A low roll can indicate higher volatility. Even if the price has not moved in any direction, if the rollover is low it simply means the volatility is high hence the traders are not willing to accept risk. It could also mean traders are willing to trade intraday as opposed to positional trades.
