The bullish sentiment in the market has seen trading in all derivatives products on the NSE gain momentum since January, with the exception of Nifty futures. The total volume of NSE-based derivatives decreased from 1,610 crore in January to 1,415 crore in February and steadily increased thereafter to 3,599 crore in June. Since then, it started declining and slid to 2,291 crore in November. On the other hand, from Rs 7.56 lakh crore in January, the total value of derivatives trading on the NSE has gone up to Rs 16.62 lakh crore during November. The open interest also increased from 2,269 crore in January to 3,418 crore in October and declined thereafter to 3,418 crore in November. But the interest in Nifty futures has been declining faster than expected.
Siddarth Bhamre, head of derivatives, Angel Broking, said, ?In the range-bound market, participants prefer options strategies rather than naked future.? The traded volume of Nifty futures decreased from 79.03 crore in January to 72.51 crore in February and increased thereafter to 96.59 crore during March. From April onwards, the volume of Nifty futures started declining and fell to 71.02 crore in November. The share of Nifty futures in total derivatives decreased from 4.91% in January to 2.12% in June and went up to 3.10% in November. A market analyst said, ?The market was undervalued in the beginning of the year. Then all the players took positions in the broader Nifty. That?s why the volume was high. People are taking more position in stocks than in Nifty.?
Of the total derivatives, the value of NSE-based stock futures fell to Rs 1.85 lakh crore in February, down from Rs 2.09 lakh crore in January. In June, the value of NSE-based stock futures was Rs 5.89 lakh crore. After that, it started declining and was down to Rs 4.38 lakh crore in November. In terms of volume, the figures followed more or less the same trend. Amid this, share of NSE-based stock futures in terms of volume in total derivatives, has increased from 81.64% in January to 82.43% in October and decreased thereafter to 80.06% in November. The share of stock option in total NSE derivatives in terms of volume increased from 7.01% during January to 7.91% in June and went up further to 9.64% in November.
