Fresh buying resulting in built up of long position in the derivatives segment led to spurt in the turnover of the segment by at least 50% in a single session on Tuesday. The volumes in the F&O segment have dipped since the meltdown as most of the leveraged players took huge beating during the period1. The markets turnover on the derivatives segment at the NSE rose from 73.67 crore shares at a notional value of Rs 42,616.26 crore on Monday to 106.17 crore shares of Rs 66,627.56 crore on Tuesday. The normal turnover in the F&O segment used to be in the range of Rs 70,000 crore to Rs 80,000 crore.
Short covering at lower levels, which usually starts a week ahead of the expiry ofthe derivatives contract, helped the markets end on a positive note. Short position which was created for some time now in an uncertain market were covered on Tuesday, said dealers.
The Nifty March contract ended the day at 4,884.90 points, an increase of 253.70 points or 5.48% from Monday?s close with a decrease in the open interest (OI) by 20.64% or 58.99 lakh shares to 2.2 crore. The Nifty April contract saw a major long built up as the contract ended the day at 4890.35 points adding 263.60 points or 5.70% and the OI increased by 39.66% 43.26 lakh shares to 1.5 crore.
Viral Mehta, manager, F&O segment, Mehta Equities Ltd said, ?The gains can some what be attributed to short covering at lower levels but there were some fresh long position begin created in the March and April contract. We also saw some intra-day short covering in a very short span of 25 minutes mainly by some HNIs in the last half an hour of the trading session. Also, we saw an increase in the volumes in the options contracts being traded. Overall, we expect a healthy rollover of 65% to 70% this time.?
The overall markets wide rollover and rollover in the Nifty stood at around 30% till Tuesday.