(Repeats story issued on Monday)
MUMBAI, July 21 (Reuters) - Indian stock futures saw
short-covering and fresh buying on Monday ahead of a confidence
vote in Parliament that would decide the fate of the government.
If the federal government failed to win the confidence
motion on Tuesday, it could trigger snap elections this year.
Nifty July futures <NIFc1> ended 2.1 percent higher at
4,165.10 points, while the benchmark spot index <.NSEI> closed
at 4,159.50 points, up 1.6 percent. Premium to the spot was 5.6
points, compared to a discount of 14.6 points on Friday.
"Implied volatility (IV) is up. Whenever there is
uncertainty, IV is bound to go up," Ravi Sharma, analyst at
Prabhudas Lilladher said.
"People expect market to be volatile tomorrow and maybe in
the coming days, that's why IVs are high."
The total market IV is about 55-56 percent, Sharma said.
"People essentially want to not take a view now and wait for
a day when things are clear on the government. Perhaps they
would play it safe rather than take any view," said Karun Mutha,
Head of Derivatives of IL&FS Investsmart.
Banking stocks, in particular, saw a long build-up including
Indian Bank and Yes Bank, which Mutha attributed to "prices
having corrected significantly,".
Analysts see resistance at 4,250-4,300 for the Nifty and
support at 4,100.
TOP FIVE CONTRACTS BASED ON OPEN INTEREST
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COMPANY NAME RICS
OPEN INT
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Reliance Petroleum Ltd <RPETnsc1>
41518225
IFCI Ltd <IFCInsc1>
40956300
Ispat Industries Ltd <ISPTnsc1>
36947450
NTPC Ltd <NTPCnsc1>
33031375
Tata Teleservices (Maharashtra) Ltd <TTMLnsc1>
28988300
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TOP PERCENTAGE INCREASE IN OPEN INTEREST
----------------------------------------------------------------------
COMPANY NAME RICS
%AGE CHG
----------------------------------------------------------------------
Indian Bank <INBAnsc1>
111.87%
IBN18 Broadcast Ltd <IDFCnsc1>
30.14%
Nagarjuna Construction Co Ltd <NGCNnsc1>
27.89%
Jammu & Kashmir Bank Ltd <JKBKnsc1>
15.38%
Yes Bank <YESBnsc1>
15.27%
----------------------------------------------------------------------
TOP PERCENTAGE DECREASE IN OPEN INTEREST
----------------------------------------------------------------------
COMPANY RICS
%AGE CHG
----------------------------------------------------------------------
CNXIT JUL08 <CITc1>
23.04%
Lupin Ltd <LUPNnsc1>
22.94%
ITC Ltd <ITCnsc1>
18.33%
Wipro Ltd <WIPRnsc1>
12.33%
Cummins India Ltd <CUMMnsc1>
12.32%
----------------------------------------------------------------------
(Reporting by Jasudha Kirpalani, Editing by Harish Nambiar)
(([email protected]; +91 22 6636 9028;
Reuters Messaging: [email protected] ))
Keywords: MARKETS INDIA/DERIVATIVES