18% rollover of open positions seen on Nifty futures

On a volatile trading day, the Nifty futures swung wildly around the Nifty spot.

The Nifty future witnessed a sharp turnaround on account of heavy short covering particularly during fag end of the trading.

Directional call

The Nifty November future closed at 5536.20, a premium of about 16.85 points with respect to the spot close.

Rollover of open interest position to December series was just 18 per cent, indicating that investors are not willing to take a directional call on the market.

However, the premium was better at 20.45 points for Nifty December futures and saw an addition of about 27 per cent in open interest positions.

The top five contracts based on open interest positions are Reliance Petroleum, IFCI, RNRL, Tata Teleservices (M) and PowerGrid Corporation. Among stocks futures, Reliance Capital, GMR Infra and SBI were star performers as they gained 7.8 per cent, 4.7 per cent and 4 per cent respectively.

While Reliance Capital and GMR Infra witnessed accumulation of open interest positions, SBI saw a sharp drop of 10 per cent in open interest positions.

FIIs selling

After pumping out Rs 4,200 crore on Tuesday, they sold another Rs 2,138 crore on Wednesday.

They mainly offloaded index futures. They hold Rs 16,985 crore of index futures against Tuesday’s figure of Rs 15,801 crore. This indicates they added lot of short positions on index futures.

Securities ban

The NSE has banned derivative contracts of NIIT Technologies, IFCI, Adlabs Films and Reliance Petroleum as open interest positions have crossed the 95 per cent of the market wide position limit.

Source - Hindu Business Line