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Our Bureau

Chennai, Sept. 18 As markets bounced back from a flat start, the Nifty September futures surged on the back of heavy volumes. Tuesday’s turnover stood at Rs 45,000 crore against the last five-day daily average of about Rs 40,000 crore.

Short-covering could be the primary cause for this surge in turnover as indicated by the Nifty future moving into the premium zone – it now commands a premium of about 3.6 points against Monday’s discount of 7.5 points.

While, it saw some (about 3 per cent) shedding of open interest positions in September contracts, it added about 19 per cent in October series, thus indicating a healthy rollover. September series expiry is nearing as just six trading days are available for its trading.

The top 10 contracts contributed to around 38 per cent of the total traded volume in futures on individual securities. Reliance Capital was the most active future contracts on individual securities traded today with 41,460 contracts and Reliance was the next most active futures contracts with 41,112 contracts being traded.

While counters such as Corporation Bank, Wockhardt, India Infoline and Tata Chemicals saw accumulation in open interest, Neyveli Lignite, Titan and S Kumars saw a decline in their open interest positions.

Even as banking counters – Andhra Bank, Bank of Baroda, ICICI Bank, SBI and HDFC Bank, saw smart accumulation (in October series), Bank of India shed 17 per cent open interest in its October series. However, both BoI September future at 251.05 and October at 252.35 closed in premium with respect to the spot closing price of Rs 249.40.

Open interest of BoI September contracts moved up 2.25 per cent. This indicates that select traders are adopting calendar spread strategy on BoI by selling October contracts and buying into September contracts.

As the price tends to converge towards settlement (September 27 is settlement day), traders will benefit from this strategy as the September contracts are close to the spot price.

The NSE has imposed a ban on contracts of Rajesh Expo, Bindal Agro, Tata Tele (Maharashtra), Escorts, Bongaigaon Refineries, IDBI, GMR Infra, Arvind Mills and Nagarjuna Fert as open interest positions have crossed 95 per cent of the market-wide position limit.

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