The Hindu Business Line : IDFC in F&O list

TRADING activity was robust last week even as there was a high degree of volatility at the derivative segment on the NSE; the average daily turnover was Rs 17,227 crore against the previous week's figure of Rs 17,123 crore.

IDFC, which recently came out with an IPO, has been introduced into the F&O segment on Friday. The contract size has been fixed at 5900. The stock was listed last week.

Fair value: The fair value of the Nifty August contracts (without considering dividend yields) works out to about 2365 against the Friday's close of 2360.45 (assuming interest rate at 6 per cent). The FV of September contracts stood at 2376 (appx) against the Friday's close 2347.3. This indicates that farther month (September) contracts are trading cheaper with respect to the August Nifty contracts.

The Nifty August futures is trailing the spot Nifty by just 1.10 points against the previous week gap of 11.35 points. The Nifty September contract is now trading at a discount of 14.25 points against the previous week gap of 22.5 points.

FII position: The cumulative FII positions as percentage of total gross market position in the derivative segment was flat at 30.56 per cent against 30.86 per cent last week.

Stock futures: Reliance, SBI, Tata Steel, Reliance Capital, Tata Motors, VSNL and HLL were the more actively contracts. Apart from them, contracts on Infosys, Satyam and TCS were also remained active.

* Most individual stock futures are at a discount to spot; the discount level has narrowed compared to last week.

* Implied volatility of puts jumped for most contracts rose while that of calls declined marginally.

* Put/call ratio on volume-basis and open-positions wise increased for the index heavyweights indicating weakness.

* While SBI, HLL, Reliance and Syndicate Bank added open interest positions, Tata Steel and Satyam Computer saw decline in OI positions.

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