The Hindu Business Line : State Bank of India, ICICI Bank add short positions in October contracts

Chennai, Sept. 23 Turnover improved to Rs 68,368.66 crore on Tuesday in the F&O segment on the NSE against Monday’s figure of Rs 58,188.03 crore. The Nifty September future closed at 4135 against the spot close of 4126.9. The Nifty October future closed slightly higher at 4140.8; the rollover open interest positions to October series picked up to 40 per cent.

Index options

Among the Nifty options, the Nifty-Oct-4200 call and Nifty-Oct-4600 call were the most active. Among the put options, Nifty 4200, 4000 and 3000 strikes (all October series) witnessed sharp surge in activity. While the 4200 and 4600 calls saw lot of writing (selling) activity, the puts saw accumulation in open interest positions. This suggests that the Nifty may find it difficult to move up.

The NSE Volatility index or India VIX, which measures the immediate expected volatility of the market, increased marginally to 38.74 per cent from Monday’s 37.97 per cent.

Stock futures

Reliance Industries was the most active. The Reliance September future closed at 2013 against the spot close of 2006.45. The October contracts closed at 2024.1 and added about 7.8 lakh shares in open interest positions.

Banks

ICICI Bank September future closed in discount at 596.65 against the spot close of 599.15. However, the October future ended marginally higher at 600.35 and added about 26.6 lakh shares. The unmatched bid/ask order book suggests that most of the accumulations were on the short side.

Similarly, SBI September future also closed in discount at 1500 against the spot close of 1503.25. The October future ended at 1496.6, indicating the sharp accumulation of short positions.

The DLF September future ended at 394.7 and the October future at 391.5 against the spot close of 394.7, indicating the accumulation of short positions.

Sesa Goa continued to see large volumes, and its near-month contract ended at a discount to the spot with 38.15 per cent drop in open interest as investors covered short positions; the September contracts closed at 125.15 and the October future at 124.45, against the spot close of 126.65.

FII activity

Foreign institutional investors turned net sellers on Tuesday to the tune of about Rs 275 crore in the F&O segment. The net sold about Rs 802 crore worth index futures, Rs 80.75 crore worth stock futures and about Rs 28 crore worth stock options. FIIs, however, were net buyers on index options by Rs 637 crore.

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