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K.S. Badri Narayanan

TRADING activity at the F&O segment on the NSE picked up sharply last week.

The average daily volumes improved to Rs 13,606 crore against the previous week figure of Rs 9,568 crore.

Rollover: Rollover of positions was also moderate; around 70 per cent of Nifty contracts were rolled over to June series; in the case of stock futures, the rollover was 75-76 per cent.

Fair value: The fair value of the Nifty June contracts (without considering dividend yields) works out to about 2,058 against the Friday's close of 2047.45 (assuming interest rate at 6 per cent).

The FV of July contracts stood at 2,046.45 (appx) against the close of 2026.25

This indicates that farther months' contracts are fairly under-priced with respect to near-month contract. In this backdrop, buying the farther month contract and selling the near one may be beneficial.

FII position: The cumulative FII positions as percentage of total gross market position in the derivative segment jumped to 41.43 per cent against last week's level of 33.3 per cent (Thursday).

They bought heavily and were net buyers during the last week till Thursday in the derivative segment.

Stock futures: Reliance, Tata Steel, SBI, Infosys Technologies, Satyam Computer, TCS, Tata Motors, Maruti and TCS were the most active contracts.

New listing: The NSE added 10 securities from Friday including Escorts, IFCI, IVRCL Infrastructure, SRF, Strides Arcolab and Videocon International in the derivatives segment.

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