The Hindu Business Line : No trading on IPCL

DESPITE a sharp run up in benchmark, the trading activity dipped last week at the derivative segment on the NSE; the average daily turnover sipped to Rs 17,123 crore against the previous week's figure of Rs 20,015 crore.

The NSE has banned the trading activity on the derivative contracts of IPCL as it crossed 95 per cent of the market-wide position limit on August 5. "It is hereby informed that all clients/members shall trade in derivative contracts of IPCL only to decrease their positions through offsetting positions," the NSE has said in its statement.

Fair Value: The fair value of the Nifty August contracts (without considering dividend yields) works out to about 2369 against the Friday's close of 2349.85 (assuming interest rate at 6 per cent). The FV of September contracts stood at 2380 (appx) against the Friday's close 2338.7. This indicates that farther-month (September) contracts are trading cheaper with respect to August Nifty contracts

The September Nifty contract is now trading at a discount of 22.5 points; the gap, however, was 17.5 points last week.

FII position: The cumulative FII positions as percentage of gross market position in the derivative segment improved to 30.86 per cent against 28.53 per cent last week.

Stock futures: Reliance, Tata Steel, SBI, Infosys Technologies, Satyam Computer, TCS and Reliance Capital were the more actively traded contracts. Apart from this, VSNL, Century Textiles and Reliance Energy also witnessed hectic activity.

* Most individual stock futures are ruling in discount, but narrowed down a bit since last week position, to their respective spot prices. However, quite a few contracts, are ruling in premium.

* Implied volatility of puts jumped for most contracts improved while that of calls declined marginally.

* Put/call ratio on volume-basis and open-positions wise increased for the index heavyweights indicating weakness.

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