The Hindu Business Line : Sharp drop in open interest for all Anil Ambani group counters

Chennai, Feb. 11 Turnover remained poor in the F&O segment on the NSE despite market witnessing sharp fall. This indicates that traders, particularly day traders, are not willing to commit themselves in the volatile market.

Nifty February future closed at 4,810.55 against the Nifty spot close of 4,857, a steep discount of 46.45 points. For most part of the day, the Nifty discount was in the 15-25 range only. However, during the later part of the day the discount widened on account of fresh short positions.

Among the options, 5,300-call and 4,700-put remained active, indicating a resistance and a support for the Nifty. While 5,300-call saw a marginal increase in open interest positions, the 4,700-put added sharp surge in open interest positions. This indicates that 4,700 could be the strong support level.

Stock futures

ADAG counters were the most active. Interestingly, all the ADAG counters – Reliance Energy, RNRL, Reliance Capital and Reliance Communications not only saw sharp fall in future prices, but also witnessed sharp drop in open interest positions.

Besides, all of them including Reliance Power, which got listed today, closed below the respective spot prices.

This indicates creation of fresh short positions on them. These stocks could see some recovery in the days ahead on account of short covering.

M-DAG

Though the Mukesh Ambani group counters – Reliance Industries and RPL also witnessed sharp fall, the former did not see much dip in open interest positions. While the latter saw a drop of 4.25 per cent in open interest positions.

ICICI Bank, NTPC and Essar Oil also saw both value erosions and drop in open interest positions.

FIIs selling

Foreign institutional investors remained net sellers on Monday to the tune of Rs 287.8 crore.

While they were net buyers in index options (Rs 144.49 crore) and stock futures (Rs 488), overseas investors offloaded index futures to the tune of Rs 862.28 crore and stock options to the tune of Rs 58 crore.

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