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Our Bureau

Chennai, Aug. 11 Trading volumes took a knock at the F&O segment as turnover slipped to Rs 39,699.28 crore against Friday’s value of Rs 47,120 crore. The Nifty August future closed at 4633.6 against the spot close of 4620.40, a premium of about 13 points. The Nifty September future closed at 4627.85, just a premium of about seven points, indicating that traders have accumulated short positions expecting the market to fall next month.

Among the options, 4600 and 4700 calls and 4500 and 4400 puts remained active. The unmatched bid/ask order book suggests that put writers have emerged at 4400 and 4500 strikes. This indicates that the Nifty might face strong support at these levels.

The NSE Volatility or India VIX declined further to 31.37 points from Friday’s value of 35.14. This points to the fact that marketmen’s fear over the Nifty outlook has receded.

Reliance Industries was the most active followed by Reliance Capital and Reliance Infrastructure.

Though Reliance Industries and RNRL saw decline in open interest positions, contracts on Reliance Infrastructure added about 9 per cent in open interest positions.

HDIL entered the active zone and added about 28 per cent or 12.22 lakh shares in open interest. The HDIL August future closed 513.25 against the spot close of 507.7. Cost-of-carry also remained positive, indicating positive bias for the stock. The only worrying factor was unmatched order bid/ask book, which tilted towards more sellers. This suggest that the stock could face strong resistance at every rise. Banking counters ICICI Bank and SBI August futures rule in discount; the former shed about 4 per cent in open interest and closed at 768.75 against the spot close of 771.15. The latter finished at 1588.05 against the spot close of 1597.95.

Foreign institutional investors remained net buyers to the tune of Rs 815.67 crore in the F&O segment on Monday. They were net buyers in index futures worth Rs 444.70 contracts, stock futures Rs 27.42 crore, index options Rs 329.15 crore and stock options Rs 14.4 crore.

More Stories on : Derivatives Markets | On the hedge

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