Nifty futures trade at a discount

F&O OUTLOOK

Dealers said the Nifty ended below its crucial support for the day and would remain in consolidation mode for the next few sessions before it can attempt a bounce back from current levels.

National Stock Exchange's Nifty ended at 4739.60, down 130.50 points, or 2.7 per cent, from Friday. It moved between a high of 4908.80 and a low of 4713.00 during the day.

The June futures contract ended at 4696.00, down 154.10 points, July contract ended at 4699.95, down 147.95 points, and August contract ended at 4695.00, down 154.10 points.

The Nifty has a support at 4660 and resistance at 4800, according to dealers. Investors unwound long positions in contracts of real estate companies and banks, while building short positions in automobile shares.

Hero Honda Motors June contract ended at 23-point discount to the spot with a 15 per cent rise in open interest. The company on Monday reported a 9.5 per cent on-year rise in two-wheeler sales for May.

The near-month contract for heavyweight Reliance Industries ended at a 15-point discount to the spot with a 3 per cent rise in open interest. The other active June contracts included Reliance Petroleum, Essar Oil, Infosys, Tata Steel, Reliance Capital, Larsen & Toubro, and State Bank of India.

Turnover in NSE's derivatives segment was Rs 352.58 billion compared with Rs 358.84 billion on Friday.

Foreign institutional investors' cumulative positions as a percentage of total gross market position in the derivatives segment as on Friday was 42.49 per cent against 43.57 per cent on Thursday.