The Hindu Business Line : Nifty futures add fresh short positions

Nifty future, which saw sharp short-covering on Wednesday, added fresh short positions in today’s trade that widened its discount to 46.15 points with respect to the spot close.

The July future added 11.3 lakh shares in open interest positions and closed at 3879.6 against the spot close of 3925.75.

Among the options, Nifty 4000 strike and Nifty 3800 put were the most active. While the put added about 1.92 lakh shares in open interest, the latter added 4.46 lakh shares. This suggests that call writers have emerged at 4000 level indicating a strong resistance for the Nifty. Strong accumulation of over 10 lakh shares in 3700-put indicates that Nifty is heading for that level.

India VIX or NSE Volatility index, which measures expectation of volatility over the near-term, increased to 36.26 points over the previous day’s close of 35.38, presenting cautious outlook.

Stock futures

Reliance Industries was the most active counter followed by RPL and Tata Steel. Most counters saw drop in open interest positions. Among them, Reliance Petroleum (26.18 lakh shares), Shree Renuka Sugars (8.6 lakh shares) and Reliance Capital (5.04 lakh shares) witnessed sharp drop. On the other hand, Cairn India saw sharp accumulation of 8.43 lakh shares in open interest positions.

Discount

The discount was steep in the case of Tata Steel, DLF, State Bank of India and ICICI Bank with respect to their spot closes. Though open interest declined in the case of Tata Steel, the others added positions, albeit marginally.

FII activity

Overseas investors remained net buyers to the tune of Rs 352.16 crore in the F&O segment on Thursday. While they net buyers in index futures (Rs 133.96 crore) and stock futures (Rs 246.51 crore), FIIs were net sellers in index options (Rs 24.79 crore) and stock options (Rs 3.52 crore). In the cash segment, they were net sellers to the tune of about Rs 607 crore, according to NSE provisional data.

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