The Hindu Business Line : Nifty future moves past 5700 mark

Chennai, Oct. 15 The Nifty future crossed both 5600 and 5700 points quite effortlessly on Monday while bulls continued their party. It now commands a higher premium of 34.5 points against Friday’s closing premium of 12.5 points. Trading volume was moderate at Rs 76,830 crore compared with Friday’s Rs 90,420 crore.

All the actively traded stock futures – Reliance Energy, Reliance Industries, Reliance Communications, SAIL, Reliance Capital, Reliance Petroleum, Tata Steel and NTPC – added open interest signifying underlying strength of the market. Besides, Nifty November futures also saw sharp accumulation of open interest positions indicating investors’ optimism for medium-term as well.

On the other hand, CNX IT futures and Bank Nifty futures saw shedding in open interest positions. While the former gained 1.32 per cent, the latter surged 4.37 per cent. The drop in open interest in Bank Nifty futures suggest that lot of traders booked profits during intra-day as they were not betting on bank counters ahead of the crucial RBI monetary policy.

Apart from Bank Nifty, individual bank counters including SBI, Allahabad Bank, Axis Bank and Corporation Bank saw decline in open interest positions.

Securities under Ban

NSE has banned trading in IFCI, Escorts, Triveni, Tata Tele Maharashtra, Omaxe, Nagarjuna Fert, Arvind Mills and Adlabs as open interest positions have crossed the 95 per cent of the market-wide position limit.

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