Derivatives Take A Dip

The derivatives market fell as investors offloaded positions in index heavyweights such as Infosys Technologies in the cash market. The sentiment was edgy with uncertainty over the government's response to the terrorist attack in Kashmir.

Nifty July futures closed 11.60 points lower at 1038 amid volumes of 4661 and contracts and an open interest of 5,458 contracts. The S&P CNX Nifty closed lower by 12.05 points at 1035.95.All three index futures closed at premium to the spot index. The August and September contracts closed at 1043.20 and 1050 points, respectively.

On the BSE, only the near-month contract attracted trades and it closed lower by 39.70 points at 3275 as against Sensex loss of 49.53 points at 3229.18 amid a negligible volume and an open interest of 550 contracts.

The highest volumes in the Nifty options were in the Nifty July call at 1040, which logged 150 contracts. Other calls to attract trades were the Nifty July call at 1050 and 1060. Puts at 1040, 1060 and 1050 logged trades.

Satyam futures continued to trade at a discount indicating that there might be some more downside in the stock. The total traded quantity shooting up to 7348.

However, Infosys futures finished at a premium to the cash market. Satyam also dominated the trading in the options segment. Satyam July call at 240 with 978 contracts was the top traded. Refinery stocks HPCL and BPCL were actively traded.