The Hindu Business Line : Nifty future in steep discount

Turnover jumped on Thursday, which saw the settlement of January month contracts, to Rs 78,768 crore. Turnover in the F&O segment was thin ever since the market crashed on January 21.

Rollover of Nifty future to February month series was about 75 per cent while the figure was much less at around 70 per cent in the case of stock futures.

Even though in percentage terms, these figures compares well with that of the last three expiries, in absolute terms, open interest positions in the whole market is low.

However, the Nifty February future ended in a steep discount of about 54 points indicating fresh creation of short positions.

Quite interestingly Nifty February 6050 witnessed active trading.

This indicates that call writers do not expect the the Nifty to touch 6050 level. The Nifty 6050 call closed the day with a premium of Rs 23.

Stock future

R-Pack counters were the most active though almost all of them ended in the negative territory.

The other active counters include BHEL, GMR Infrastructure, ICICI Bank, IDBI, Infosys, JP Associates, L&T, NTPC, ONGC, SBI and TCS.

Some of the stocks that saw low level of rollover against the three-month average are Bharti Airtel, Cairn India, Arvind Mills, IFCI, Ispat Industries and JP Hydro.

This indicates traders losing interest in momentum stocks, as they have burnt their fingers when the market crashed recently.

FIIs buying

Foreign institutional investors remained net buyers, albeit marginally, to the tune of Rs 129.27 crore.

However, they were net sellers in index futures by about Rs 1,013 crore while there remained net buyers in index options (Rs 399 crore) and stock future (Rs 743.32 crore).

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