The Hindu Business Line : Nifty future surrenders premium on fresh shorts

Chennai, Dec. 3 The Nifty future surrendered most of its premium with respect to the spot close on Monday. It now commands a premium of just 11.45 points against Friday’s premium of about 45 points. A lot of squaring-off of long positions and creation of fresh short positions, particularly towards closing hours, has caused a dip in the premium. According to NSE web site, open interest positions declined marginally by 0.06 per cent. This indicates that traders are not willing to carry over positions and instead book profits.

Despite the broad market witnessing sharp surge, turnover in the F&O segment remained moderate at Rs 54,816 crore.

Stock futures

Attention was centred momentum counters. Essar Oil was the most actively traded counter followed by Reliance Energy, IFCI, IDFC, RNRL and Reliance Capital. Essar Oil added 10 per cent open interest, while IFCI added 15 per cent and IDFC 29 per cent. Reliance Capital also saw an accumulation of 8 per cent though Reliance Industries added 1.1 per cent open interest positions.

Despite sharp gain, Reliance Energy saw dip of about 3.5 per cent in open interest positions. Others such as RNRL and Neyveli Lignite Corporation also shed open interest positions.

FIIs sellers

Foreign institutional investors remained net sellers to the tune of Rs 385.66 crore on Friday, according to NSE data. However, they were net buyers on index futures; they also bought heavily into index options, which means that they are expecting another bout of volatility on the markets.

Securities under ban

The NSE has continued to impose trading ban on Adlabs Films as open interest positions have crossed 95 per cent of the market-wide position limit.

More Stories on : Derivatives Markets | On the hedge

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