The Hindu Business Line : Activity picks up to mark expiry of Feb contracts

TRADING activity picked up sharply in the derivative segment on the NSE on Thursday, the last day for the settlement of February month contracts - Rs 18,144 crore on Thursday against Wednesday's figure of Rs 13,441 crore.

Index futures: The NSE S&P CNX Nifty remained in the positive territory for most of the day but ended the day sharply lower at 1765.80 against the previous day's close of 1786.80; the Nifty touched intra-day's high of 1818.60.

The February contracts expired at 1770.25 as against the previous day's close of 1788.70. About 10,795 contracts were allowed to expire, indicating traders were unable to square off their positions due to steep fall.

The March Nifty futures closed the day at a premium to the spot at 1775.75 (1785.60). Open interest improved by over 40 per cent but the unmatched order book at the NSE still suggests downward bias as the sell side outnumbered the buy side by close two times.

The April Nifty futures closed at 1777.35 (1792.20). The open interest positions improved 30 per cent.

Stock futures: February series remained active as were the March contracts. The actively traded contracts include Reliance, Tata Steel, SBI and Satyam Computer.

Reliance, which has been witnessing a steady decline in recent past, continued its downward slide. The March Reliance futures closed the day lower at Rs 547.05 (Rs 557.90) but in sharp premium to the spot close of Rs 542.30. Open interest positions improved by 54 per cent.

The April Reliance futures closed at Rs 555.05 (Rs 560.10) and added five contracts in open interest positions.

FII position: Cumulative FII positions as percentage of total gross market position in the derivative segment as on February 25 stood at 19.46 per cent.

FIIs were net sellers to the tune of Rs 3.39 crore. (They were net buyers of Rs 10.58 crore in index futures and net sellers in individual stock futures at Rs 13.97 crore).

Their open interest position as on Wednesday stood at Rs 3,939.23 crore, including in stock future at Rs 905.92 crore and on individual securities at Rs 3020.57 crore.