Nifty discount widened sharply from Friday's 20-25 points to 70-75 points by the end of session on Monday. Annualized Cost of Carry (CoC) of Nifty June futures was negative 62.88% against negative 31.59% on Friday.Over 16 lakh shares were added in Nifty July futures with sharp increase in discount from 20-25 points on Friday, 35-40 points in the first half of session to 70-75 points towards the end of the session indicating aggressive short positions created in the markets. Open Interest (OI) has further decreased significantly in majority of stock futures indicating continuous unwinding of positions by players.The Implied Volatility of Nifty also shot up today indicating existence of high uncertainty. Thus, the markets are expected to continue depicting high volatility and remain weak, since the discount in many stocks has also widened today. Put-Call- Ratio (PCR) of Nifty has further dipped to 0.66 against 0.68 the previous day as the Call options have added over 5 lakh shares (+5%) whereas the Put options also have seen marginal addition of 1.4 lakh shares (+2%).
