Turnover dips below Rs 50k-cr mark
Chennai, Dec. 10 NSE F&O segment witnessed a poor trading volumes as the market remained indecisive. Turnover dipped below Rs 50,000-crore – for the first time since September 18 – at Rs 47,278 crore on Monday. The Nifty December future, however, ended in premium of 12.75 points with respect to the spot close. The premium was, in fact, in negative during early trading hours. Nifty December future also saw a dip in open interest positions due to unwinding of long positions. Short-covering was also seen towards the closing hours.
Nifty future may take a direction on Tuesday. Either way – up or downwards – it could be a huge swing. Investors may consider straddle strategy on Tuesday buying Nifty 6000-strikes of call and put. While Nifty 6000-put closed at Rs 165.85 on Monday, the call closed at Rs 142.20. This recommendation is valid only for the next two days.
Momentum counters continued to be rule the roost. MRPL was the most active among them followed by IDFC, Reliance Energy, Reliance Petroleum, Triveni Engineering, Essar Oil and Nagarjuna Fertilisers.
Besides, most of them were active on the option market too, particularly on the call side. Among them are: IFCI’s 110-strike, IDFC’s 230 strike, MRPL’s 140 strike and Ashok Leyland’s 65-strike. This indicates that traders are bullish on these counters.
FIIs remain sellers
Overseas investors remained net sellers to the tune of about Rs 150 crore on Friday, according to data available with NSE. While they offloaded heavily on index futures (about Rs 487 crore), FIIs remained buyers on index options (Rs 255 crore) and stock futures (Rs 75 crore).
Stocks under ban
The NSE has imposed a trading ban on Bongaigaon Refinery, Adlabs Films, Balrampur Chini, GMR Infra, JP Hydro, Rajesh Exports, & Arvind Mills as open interest positions have crossed the 95 per cent of the market-wide position limit.