• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Chennai, Oct. 13

Despite the strong rally on Monday, the turnover witnessed a steep fall to Rs 40,624.27 crore in the F&O segment on the NSE against Friday’s turnover of Rs 48,279.24 crore. The Nifty October future ended firm at 3550 and the November future at 3570.2 against the spot close of 3490.7. The higher premium of 59.5 points for October contracts and 79.5 for November contracts suggests huge short-covering had happened. According to market sources, apprehension of some kind of tightening in short-selling rule was the main reason for squaring off short positions.

The October future added about 33.53 lakh shares in open interest and the November future 3.51 lakh shares in open interest positions.

The Mini Nifty Future, where retail investors play a major role, saw open interest declining by 14 per cent or 1.12 lakh shares, indicating profit booking.

Among the options, Nifty 3600, 3700 calls and 3400 put were the most active. The 3600 call saw accumulation of 4.90 lakh shares and the 3800 call added 3.41 lakh shares in open interest positions. On the other hand, the 3400 put saw addition of 4.94 lakh shares and the 3300 put 4.75 lakh shares, indicating existence of pessimism is in the market.

The NSE volatility index or India VIX jumped to 46.49 against Friday’s close of 44.7. This also paints a negative picture as the index jumped quite sharply (in January, July and September) whenever the market witnessed a sharp fall.

ICICI Bank was the most active followed by Reliance Industries, SBI and Reliance Capital. Most of the counters ended in premium with respect to the spot close. However, un-matched bid/ask order book suggests that Reliance Industries, Reliance Capital, NTPC, ONGC and NTPC witnessed accumulation of short positions.

On other hand, SBI saw fresh additions of long positions in open positions.

Overseas investors were net buyers to the tune of Rs 161.8 crore in the F&O segment even though they were net sellers in cash segment by Rs 1,061 crore.

More Stories on : Derivatives Markets | On the hedge

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line