April futures at premium

DERIVATIVES REPORT

April Nifty futures were traded at a premium of around two points to the underlying spot index.

The open interest decreased by 1.8 lakh shares. The implied volatility fell in call options to 19 per cent, while the volatility in put options was 27 per cent.

However, overall volumes on the National Stock Exchange's derivative segment were low at Rs 9,160 crore. Satyam Computer, Tata Steel, State Bank of India and Reliance Industries were the most active futures contracts.

Bank stocks saw considerable action and build-up of open interest. Punjab National Bank added 6.3 lakh shares, Bank of Baroda 49 per cent, Oriental Bank 48 per cent and ICICI Bank 60 per cent in open interest.

ICICI Bank was traded at a discount and there was a build-up of 10 lakh shares due to hedging/arbitrage activity in view of its forthcoming public offer.

Technology stocks saw substantial action and a strong build-up of open interest. Infosys added one lakh shares, while Satyam added 7.6 lakh shares in open positions.

Polaris continued to slip and added nearly 50 per cent in open interest. Public sector stocks GAIL India and Hindustan Petroleum Corporation witnessed a build-up of open interest despite closing flat for the day.

Bharat Petroleum Corporation rose smartly and lost open interest. Indian Oil Corporation saw an increase in open positions.