Rumours take its toll… - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Rumours take its toll…

Mar 24, 2001

Rumours take its toll…

Contract Open
Last traded
Volume (no of
contracts traded)
(Rs m)
Open interest
(no. of units)
Days to
29-Mar-01 1,200 1,200 1,135 1,160 772 180 1,925 6
26-Apr-01 1,186 1,199 1,150 1,166 692 164 1,608 32
31-May-01 1,195 1,210 1,150 1,178 34 8 103 62
Total         1,498 351.4 3,636  
Nifty 1,163 (down 21 points)

Cash market:
The market plunged down following the raids by income tax authorities at leading stockbrokers. Adding to the fall of the indices was the rumours of profit warning by the IT major Infosys. At lower levels, buying by institutions helped the indices to recover. Volumes on the bourses however remained low. Nifty closed at 1,163, a decline of 2.2%.

Derivative market:
Volumes shot up sharply by more than 300% on the futures bourses. As normal markets tumbled down, traders took fresh positions in the futures. The reason could be the fact that the futures markets do not have any upfront or carry forward margins, which is not the case on the normal market. It seems market has discounted all the news as volumes were slightly better.

March series:
Generally when the contract nears to its expiry, open interest starts coming down. Volume increased along with decrease in the open interest position. Carrying cost continued to be negative as futures are trading at discount to market. All the parameters indicate closing of positions.

April series:
Volume has started building up in this series as March series is nearing to expiry. Open interest position increased by 339 contracts.

May series:
Volumes were lackluster in this series as players are unable to make a call on May series.

Equitymaster requests your view! Post a comment on "Rumours take its toll…". Click here!


More Views on News

Top 5 Stocks Mutual Funds Bought and Sold in March 2021 (Sector Info)

Apr 16, 2021

A look at what India's top equity mutual funds bought and sold in March 2021.

Kotak India EQ Contra Fund: Eliminating Emotional Bias (Outside View)

Apr 16, 2021

PersonalFN's analysis on the features and performance of Kotak India EQ Contra Fund.

A Warning About Bubbles (Fast Profits Daily)

Apr 16, 2021

Those who don't learn from financial history are doomed to lose their money.

11x Bankruptcy to Bluechip Stock: A Rare India Revival Story (Profit Hunter)

Apr 16, 2021

There is no stopping this 11-bagger stock from significant upside.

Market Crash: Picture Abhi Baaki Hai? podcast (Views On News)

Apr 15, 2021

Rahul Shah on whether another big crash is likely and the ideal strategy to counter it.

More Views on News

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

An India Revival Stock I'm Bullish On... (Profit Hunter)

Apr 9, 2021

This could take India to the position of 3rd largest economy.

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

A Unique Sector for Short-Term Profits (Fast Profits Daily)

Apr 12, 2021

This ignored sector could deliver big short-term profits.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Apr 16, 2021 (Close)