The Hindu Business Line : Essar Oil, RNRL turn weak

Chennai, Jan. 30 Rollover of open interest positions to February contracts picked up further on Wednesday. The Nifty future saw a rollover of about 66 per cent, while stock futures witnessed about 50-55 per cent. Trading volume remained muted at Rs 57,973 crore, indicating low level participation of retail investors.

Nifty January future closed at 5156.75 while February future at 5132.30 against the spot close of 5167.60.

The steep discount in February contracts suggests that lot of traders went short on it expecting a further decline in values.

While Nifty 5400 call was the most active in February series while Nifty 5000 and 4700 strikes were the most active among put options, indicating a broad range for the Nifty movement.

Stock futures

Reliance Energy was the most active counter followed by Reliance Industries, RNRL and Essar Oil. Among the February month contracts, Reliance and Reliance Energy were the top traded counters.

Essar Oil contract, which witnessed sharp gains in the last few days, succumbed to selling pressure. The Essar Oil January future declined 6.31 per cent at Rs 230.20 and saw a drop of 33 per cent in open interest. The February future on the stock finished at Rs 231.90 and added about 39 per cent in open interest positions. The Essar Oil on the spot market closed at Rs 230.55.

RNRL was the worst affected among the most active counters, as RNRL Jan future dwindled by 7 per cent to Rs 136.15 and the February future to Rs 137.2. It ended at Rs 136.6 on the spot market.

FII activity

Foreign institutional investors were net buyers to the tune of Rs 1,640 crore on Wednesday, according to data available with the NSE. And for the first time in several days, they were net buyers in all the three segments – Nifty future (Rs 290.55 crore), index options (Rs 468.4 crore) and stock future (Rs 880.83 crore). However, they were net sellers to the tune of Rs 911 crore in the cash segment, according to the provisional data.

Rajesh Exports continued to attract the NSE ban in the F&O segment, as the open interest crossed the stipulated 95 per cent of the market-wide position limit.

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