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Our Bureau

Chennai, Aug. 26 Turnover improved further to Rs 49,779.36 crore in the F&O segment on the NSE on Tuesday against Monday’s turnover of Rs 45,979.13 crore. With just two days left for settlement, the Nifty August future widened its premium against the spot price to about 13 points against Monday’s premium of just one point. The premium widened mainly on account of short-covering, which the traders had entered a couple of days back. The Nifty August future closed at 4350.25 and the September future at 4342.45 against the Nifty spot close of 4337.5.

Among the options, the Nifty September 4300 put and Nifty September 4300 and 4400 calls were the most active. While puts added about 8 per cent or one lakh shares in open interest, the calls added about 2.08 lakh and 2.42 lakh shares. This indicates that traders were little confused about the market direction and took exposure on both the puts and calls.

The NSE Volatility Index or India VIX declined sharply to 33.9 from Monday’s 45.26 points. This indicates that traders expect a narrow movement for the Nifty. The index measures the immediate expected volatility of the market.

Reliance was the most active counter followed by Reliance Capital and SBI. Reliance Industries saw a rollover of about 35 per cent in open interest positions. Its August future closed at 2190.3 and the September future at 2202.15 against the spot price closing of 2179.35. This indicates that lot of long positions have been rolled over. Besides, the September 2100 put saw the emergence of writers, suggesting that 2100 could act as a strong support for Reliance. On the other hand, the September 2190 and 2310 calls witnessed strong accumulation of open interests, indicating the possibility of Reliance edging towards those levels.

Foreign institutional investors have remained net buyers, albeit marginally, to the extent of about Rs 80 crore. They were net buyers in index futures (Rs 8 crore), index options (Rs 22 crore) and stock options (Rs 74.38 crore), though FIIs remained net sellers in stock futures by Rs 24.5 crore.

More Stories on : Derivatives Markets | On the hedge

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