Date:11/09/2007 URL: http://www.thehindubusinessline.com/2007/09/11/stories/2007091153291700.htm

Back Backwardation narrows down for Nifty futures

Cairn Energy, United Phosphorus add open interest positions

Our Bureau

Chennai, Sept.10 It was a tepid start to the week in the NSE derivatives segment.

Volumes were low as market participants were divided about which way the market was heading.

Against Friday’s figure of Rs 38,666 crore, Monday’s turnover stood at Rs 37,333 crore, of which stock futures accounted for Rs 21,512 crore.

The top 10 contracts contributed to around 36 per cent of the total traded volume in futures on individual securities.

Reliance was the most active future contracts on individual securities traded today with 55,943 contracts, while Reliance Petroleum was next with 31,319 contracts.

The discount, which was as big as 31.35 on Friday, has narrowed down considerably as many short positions were squared off, while a few fresh long positions were added.

Nifty futures now trails the Nifty by only 8.5 points.

OI gainers

Cairn Energy saw accumulation in open interest positions, followed by United Phosphorus and TVS Motor.

Refinery counters saw some shedding as most of them reached the permissible limit.

Other counters that lost open interest included Praj Industries, Maharashtra Scooters and Aban Offshore.

Counters such as CESC, Strides Arcolab and Aptech were ruling at a premium to their respective spot prices.

However, CESC saw some shedding in open interest, while there was low activity in Strides Arcolab.

Securities under ban

The NSE continued its ban on the trading of GMR Infrastructure, IFCI and Tata Teleservices (Maharashtra), while adding Nagarjuna Fertilizers and Bongaigaon Refineries to the l ist on Monday, as open interest positions in these stocks have crossed 95 per cent of the market-wide position limit.

However, Escorts, which was under ban on Friday, has become eligible for trading.