The Hindu Business Line : Most stock futures’ discount widens

The discount of Nifty February future with respective to the spot close narrowed down a bit. During most part of the day, the discount was hovering around 35-40 range but in the final hour due to squaring off long positions that was initiated in opening hours - pushed the discount to 42.9 points as against Monday’s discount of 46.5 points. According to NSE Web site, open interest positions remained same indicating heightened intra-day activity.

On the option side, Nifty 5000-call was the most active followed by 4700-put, 4800-put and 4900-put. While the call added sharp open interest positions, the 4700 and 4800 strikes of shed open interest positions. This means that Nifty could face stiff resistance around 5000 due to heavy call writing positions.

Stock futures

RNRL was the most active counters. Other active counters are Reliance Capital, Reliance Energy, Reliance Industries, Jindal Steel, Reliance Power, Reliance Communications and NTPC.

Interestingly all these active counters are trailing their respective spot closes and also saw sharp drop in open interest positions. These indicate the nervousness of market participants. RNRL saw a sharp drop in open interest position of about 9 per cent followed by Reliance Capital and Reliance Industries.

Reliance Power

Reliance Power saw a sharp 28 per cent surge in open interest positions though the RPower future ended in discount at 353.95 against the spot close of Rs 354.45. 400-strike, 350-strike and 450-strike call options were the active ones, indicating call writers are betting further downfall.

FIIs turn buyers

Overseas investors turned net buyers to the tune of Rs 558.4 crore on Tuesday, according to data available with the NSE. While they bought Rs 264.89 crore of index futures and Rs 414 crore stock futures, they turned net sellers to the tune of Rs 93 crore on index options.

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