Date:25/03/2008 URL: http://www.thehindubusinessline.com/2008/03/25/stories/2008032552001700.htm

Back Momentum counters lose steam

Premium widens for Nifty futures

Chennai, March 24

Despite this being the settlement week, trading volumes remained low in the futures and options segment on the NSE on Monday. Volatile conditions seemed to have kept the players on the sidelines as turnover dipped to Rs 42,610 crore against Wednesday's turnover of Rs 46,365 crore.

However, the premium for Nifty March futures and Nifty April futures widened further indicating creation of fresh long positions. Good amount of short-covering was also seen, particularly during the fag end of the trading hours that lifted Nifty futures into positive territory.

The Nifty March future closed at 4642 and the April future at 4639 against the spot Nifty closed at 4609. Nifty future saw about 25 per cent rollover in open interest positions to April series.

Among the options, Nifty 4600 and 4700 call options remained active while on the puts 4600 was the most active indicating short-term range for the Nifty movement.

STOCK FUTURES

Among the individual stock futures, Reliance Industries was the most active. The other active counters include Reliance Energy, Reliance Capital, ICICI Bank, Essar Oil, DLF, Shree Renuka Sugars, RNRL, Reliance Petroleum and Tata Steel.

The momentum counters - Shree Renuka Sugars, RNRL, Essar Oil, DLF and Reliance Petrluem - were the worst affected among them. Shree Renuka was the most volatile among them. Except for Essar Oil, the other momentum players ended in premium to their respective spot close.

FIIS BUYING

Foreign institutional investors' remained net buyers on Monday to the tune of Rs 1,901.35 crore. Their net buying on index futures stood at Rs 1,838.78 crore and on stock futures at Rs 239.52 crore. However, they were net sellers on index and stock options, albeit marginally.