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Our Bureau

Chennai, Oct. 7 Turnover jumped sharply in the F&O segment on NSE on Tuesday to Rs 59,768 crore against Monday’s turnover of Rs 46,863.23 crore. The Nifty October future closed at 3640.1 against the spot close of 3606.6, a premium of 33.5 points as against Monday’s premium of about 40 points. It added about 34.35 lakh shares in open interest and the un-matched bid/ask order book suggests most of the additions were on the short side.

Interestingly, the mini-Nifty future (lot size 20), where retail investors’ actively participate saw squaring off open interest positions. According to market participants, most of their positions were squared-off for want of margin money, as the Nifty tumbled below 3600 mark. The October future shed about 1.26 lakh shares (or 12 per cent) and the November future witnessed a drop of 4,680 shares or 5.8 per cent in open interest positions. The mini-October future closed the day at 3641 and the November future at 3635.2

Nifty 3600 put and 3800 were the most active. The former added about 8 lakh shares (or 61 per cent) and the latter 6.39 lakh shares (34 per cent). The Nifty 3700 call also added about 7.93 lakh shares. For the first time, Nifty 3400 and 3500 put saw active buying. This indicates that some traders expect the market to fall below 3400 level even in the current series.

India VIX or NSE volatility index jumped 39.3 points against the previous day’s close of 33.75, indicating the accumulation of puts.

Reliance Industries was the most active followed by State Bank of India, Reliance Capital and Larsen & Toubro.

Reliance Industries and Reliance Petroleum witnessed drop in open interest positions. While the former shed about one per cent, the latter shed 3.8 per cent (16 lakh shares) in open interest positions. This suggests that traders squared off their position even both the counters recovered partially.

However, State Bank of India, NTPC and HDFC Bank saw huge accumulation in open interest positions.

Most of the counters ended in premium with respect to the spot close.

Foreign institutional investors turned net buyers, albeit, marginally to the extent of Rs 21.65 crore. While they were net buyers to the tune of Rs 188.5 crore, FIIs were net sellers in index options (Rs 83.6 crore) and stock futures (Rs 85 crore).

In the cash segment, they were net sellers to the tune of about Rs 680 crore on Tuesday.

More Stories on : Derivatives Markets | On the hedge

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