Huge rollover seen in October series

DERIVATIVES REPORT

The build-up of positions and huge rollover suggest that the market view remains unchanged. Dealers said the slight positive bias in the market is still being maintained despite hardening interest rates and the steep increase in oil prices.

Ashok Mittal, head of derivatives, SSKI Securities, said, "We will have to see what happens on the first day of the new series. If the build-up continues, then we can say that the current bias is still continuing."

Most of the build-up were occurred in the October series. Volumes in the derivatives segment, a day before the expiry of the September series, shot up to Rs 13,569 crore. The total outstanding open interest in the market hit 28.55 crore shares, the value being of the order of Rs 12,000 crore.

Nifty futures saw a turnover of Rs 4,590 crore with an outstanding open interest position of 1.35 crore, while the turnover in stock futures was Rs 7,423 crore with the open interest position at 18.50 crore shares.

A total of 4.37 lakh contracts were traded. Nifty September futures alone saw an open interest of more than 52 lakh shares, while the October futures open interest was of the order of 81 lakh shares.

Among individual stock futures, Tata Steel October series saw a good build-up of position with the open interest at 1.30 crore shares. Though there was a slight dip in Nifty futures open positions, there was a rollover of more than 50 per cent of the outstanding positions.

Reliance October futures, among the top traded contracts, also saw a good outstanding open interest of nearly 61 lakh shares.

The September series saw a dip in open interest. Dealers said the cost of carry for the October series has gone down.

Nifty September futures ended at 1,730.65, a premium to the spot Nifty's closing of 1,727.95. In fact, even the October series ended at a premium to the spot value.

The put-call ratio for the market as a whole was 0.4:1, while in the case of Nifty it stood at 1.15, up from the 1.2 on Tuesday.