The Hindu Business Line : Nifty November future premium jumps

Chennai, Nov. 27 Trading volume remained rather tepid at the F&O segment on the NSE on Tuesday. Despite this being settlement week, turnover was just Rs 75,190 crore against over Rs 1 lakh crore witnessed during the last couple of settlement weeks.

However, rollover of positions was quite healthy for Nifty future. About 51 per cent of open positions rolled over to Nifty December futures. Overall roll-over was, however, low at 42-45 per cent.

Interestingly despite only two days left for the expiry, Nifty November future ended the day with sharp premium of about 32 points with respect to the spot close. Nifty December future ended with a premium of about 14 points. Generally, prices tend to converge when settlement nears. Investors can consider going short on Nifty November future and long on December future to benefit from the arbitrage opportunity.

FIIs were net buyers to the tune of Rs 2,040 crore, mainly on index futures. Their activity also picked up.

Activity was centered around momentum counters. Essar Oil was the most actively traded counters followed by Jindal Steel, Reliance and IDFC. Rollover of open positions was rather weak when compared with index futures.

Securities under ban

The NSE has imposed trading ban on Essar Oil, Bongaigaon Refinery, Tata Tele Maharashtra, JP Hydro, Reliance Petroleum, NIIT Tech, IFCI and Adlabs Film, as open interest positions have crossed 95 per cent of the market-wide position limit.

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