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Our Bureau

Chennai, Aug. 21

Trading volume zoomed sharply on Thursday to Rs 52,004.66 crore against Wednesday’s turnover of Rs 38,567.7 crore.

The NSE August future closed at 4287.2 against the spot close of 4283.85, surrendering most of its premium in today’s trade.

Unwinding of long positions coupled with fresh short positions seemed to have affected the premium. The premium was 26.6 points at Wednesday close.

The nearing expiry was also one of the reasons for the narrowing down of the premium. Besides, traders preferred to close out their long positions rather than rolling over to September series.

The September Nifty future closed at 4283.75, on par with spot close. Nifty full over was just 12 per cent, which is below than average.

Among the options, Nifty August 4400 call and Nifty August 4300 put were the most active.

Lot of call writers have entered at 4400 all signalling that the recovery to 4000 rather remote.

Besides, in the next month contracts, Nifty 4500 and 4400 calls and 4100 put were most active, indicating the possible range for the Nifty future.

India VIX or NSE Volatility index, which measures the immediate expected volatility in the market shot up to 73.22 points during intra-day but closed at 36.55 against the previous day’s close of 33.95.

Lot of stock futures shed open interest. However, banking majors SBI and ICICI Bank add open interest on the short side.

While the SBI August future closed at 1339.95, the spot price closed at 1343.1. Similarly, ICICI Bank Aug future closed at 640 against the spot close of 643.7.

While ICICI Bank future added about 10 per cent or 11.1 lakh shares in open interest, SBI added 6.56 or 2.79 lakh shares.

The other counter that witnessed addition in open interest is Tata Steel (5.5 per cent), which closed at 591 against the spot price close of 587.65.

More Stories on : Derivatives Markets | On the hedge

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