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Benchmark index futures premium widens on short covering

Wed Sep 26, 2007 7:52pm IST
 
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 MUMBAI, Sept 26 (Reuters) - The premium on the benchmark
index futures for the current month widened on short covering
and the October series turned into premium on rollover of long
positions, traders and analysts said on Wednesday.
 The rollover of futures derivatives contracts gained
momentum with broad market rollovers at over 63 percent.
 But analysts warned that some fall is expected after the
expiry of September derivatives contracts on Thursday.
 "There has been long rollovers and some amount of short
covering," said Aalap Shah, analyst at Dolat Capital Market.
 He said most of the short covering has happened and this
has been the reason for the premium in Nifty September futures
even a day before the expiry.
 Normally the premium or discount in futures comes close to
the spot value of the securities as the expiry nears.
 The premium on Nifty September futures NIFc1 increased to
17.5 points to the 50-share NSE index .NSEI compared to 7.8
points on Tuesday.
 The Nifty October futures NIFc2 turned into premium of
7.75 points from discount of 7.9 points on Tuesday.
 The current month Nifty futures rose 0.28 percent to 4,958
points and the spot index ended marginally higher at 4,940.50
points, a record close.
 "Short rollover has not happened and funds and traders are
waiting for some more rise to do it (short rollovers)," said
Sailav Kaji, head-derivatives at PINC Research.
 Traders said there was lot of short covering in technology
stocks despite the Indian rupee touching a new high against the
dollar.
 TOP FIVE CONTRACTS BASED ON OPEN INTEREST
----------------------------------------------------------------
 -------    COMPANY NAME                                   RICs
     OPEN INT.
----------------------------------------------------------------
 -------    Rel. Nat. Resources Ltd.                    
RENRnsc1      36722400
 IFCI Ltd                                      IFCInsc1  
  31539375
 Reliance Petroleum Ltd                        RPETnsc1  
  26994300
 Tata Teleservices (Maharashtra) Ltd           TTMLnsc1  
  18810000
 NIFTY                                         NIFc1     
  17695300
----------------------------------------------------------------
 -------    TOP %AGE INCREASE IN OPEN INTEREST
----------------------------------------------------------------
 ----    COMPANY NAME                                   RICs
 CHG. %
----------------------------------------------------------------
 ----    HTMT Global Solutions                       
HGSLnsc2
 489.11%
 Karnataka Bank                               KBNKnsc2   
331.01%
 Nucleus Software Exports                     NSELnsc2   
266.67%
 Jet Airways                                  JETnsc2    
238.85%
 Jammu & Kashmir Bank                         JKBKnsc2>    
235.71%
----------------------------------------------------------------
 ----    TOP %AGE DECREASE IN OPEN INTEREST
----------------------------------------------------------------
 ----   COMPANY NAME                                   RICs   
CHG. %
----------------------------------------------------------------
 ----    Birla Corporation Ltd                       
BRLCnsc1     70.67%
 Bata India Ltd                                BATAnsc1  
 58.65%
 Kesoram Industries Ltd                        KSRMnsc1  
 57.48%
 Oriental Bank Of Commerce                     ORBCnsc1  
 57.32%
 CNX IT                                        CITc1     
 57.09%
----------------------------------------------------------------
 ----- ((Reporting by Virendra Verma, editing by Sunil Nair;
Reuters Messaging: virendra.verma.reuters.com@reuters.net;
+91-22-6636 9299)) 

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