F&O settlement day adds to pressure

Our Bureaus Chennai/Mumbai | Updated on February 25, 2011

The F&O market witnessed its highest turnover at Rs 2.77 lakh crore on Thursday — the settlement day for February contracts. There was a huge unwinding by traders who did not want to rollover their long positions in today's trade ahead of the Budget.

“Investors sold the February futures and took positions in March. The Nifty roll over was about 60 per cent, which shows that investors are not convinced about carrying long positions at the moment,” said Mr Alex Mathew, Head of Research at Geojit BNP Paribas Financial Services.

“The rollover has been historically low at 58 per cent. The 5400 put saw its biggest action today,” said Mr T. S. Harihar, Co-Head, Derivatives, at ICICI Securities. Index options saw a turnover of Rs 1.98 lakh crore; traders took heavy positions in Nifty options in anticipation of a huge swing in the Nifty post-Budget, said analysts.

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Published on February 24, 2011
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