Open interest declines in SBI, M&M, Reliance

DERIVATIVES REPORT

Sharp decline in open interest was witnessed in State Bank of India (SBI), Mahindra & Mahindra (M&M) and Reliance Industries (RIL) on Wednesday on National Stock Exchange's derivative segment.

On the other hand, open interest rose in Tata Motors, Tata Power, Maruti Udyog (MUL) and Satyam Computer. But most individual stock futures contracts traded at premium to spot prices.

The activity on NSE's futures & options (F&O) segment was low-key on Wednesday. The overall turnover declined to Rs 12,958 crore from Tuesday's Rs 15,004 crore. Turnover in Nifty March futures declined to Rs 3,922.50 crore from Tuesday's Rs 4,453.39 crore.

For the second day in a row Nifty March futures traded at discount to spot. Nifty March futures ended at 1,838.90 compared to spot Nifty closing of 1,844.35.

In the spot market, Nifty lost 21.70 points or 1.1 per cent to 1,844.35. FII data for Tuesday indicates that they were net sellers in the derivatives segment to the tune of around Rs 56 crore. The implied volatility in call options was 21 per cent, while the volatility in put options was 32 per cent.

Elesewhere, GAIL was the most active option contracts on individual securities traded with 2,291 contracts and Satyam was the next most active options contracts with 1,947 contracts being traded. Tata Motors added 5.5 lakh shares, Hero Honda added 2.3 lakh shares and Maruti added one lakh shares in open positions.

HLL added around eight lakh shares in open interest. On the other hand RIL shed 2.5 lakh shares, SBI shed five lakh shares and GAIL shed 4.5 lakh shares in open interest.