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Our Bureau

Chennai, Oct. 14 Trading volume spurted in the F&O segment on Tuesday to Rs 47,278.06 crore against Monday’s low volume of Rs 40,624.27 crore. The NSE October future, which started the day on promising note, could not hold on to the gains and ended on weak note at 3,523.9 against the spot close of 3,518.65. The premium, which was about 50 points on Monday, dipped sharply to 5.25 points on the back of unwinding of long positions. Fresh shorts were also seen, particularly towards the closing hours.

Among the options, Nifty 3700, 3600 calls and 3500 put were the most active. The 3700-call added about 9.72 lakh shares in open interest, most of which are on the short side; this indicates that Nifty might face stiff resistance to cross the 3,700 mark. On the other hand, 3500 and 3600 puts added about 4.72 lakh shares and 6.29 lakh shares in open interest positions, indicating the downward bias of the market participants.

Reliance Industries was the most active followed by SBI, ICICI Bank and Reliance Capital. Reliance Industries, Reliance Capital and DLF witnessed drop in open interest positions, due to unwinding of long positions.

Most of the counters surrendered their premium and some moved in to discount.

Reliance Industries October future closed at 1,622 against the spot close of 1,621.05 while SBI dipped in to discount at Rs 1,516.35 against the spot close of Rs 1,528.35. ICICI Bank future also ended in discount at Rs 447.8 (Rs 449.55). L&T future ended at Rs 998 against the spot close of Rs 1,005.1. The sharp discount suggests that these counters have accumulated fresh short positions.

The unmatched bid-ask order book on the NSE for these counters also suggests addition of short positions.

Infosys Technologies, Reliance Communications and NTPC saw a big jump in open interest positions.

Foreign institutional investors were net buyers to the tune of Rs 1,748 crore in the F&O segment on the NSE on Tuesday. In the cash segment too, they were net buyers to the tune of Rs 898.25 crore, according to NSE provisional data.

More Stories on : Derivatives Markets | On the hedge

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