Friday, May 13, 2011
Cast of Carry on Nifty Futures
By 3:00 Traders started to exit there positions to gain from 100 points rise and market cracked a bit , but what is surprising is the premium at which NIFTY is Quoting to SPOT at close
Nifty Futures were Quoting at 5580.85 at close while Spot is 5540 a 40 points premium which is never seen by me .Does it mean Market will go up in coming days? lets see how it unfolds in coming days.
But what is surprising more is the Cost of Carry which is at 8.1 which led me to this post
Theoretically The Futures Price = Spot Price + Cost of Carry.
Looks like Theory is thrown in dustbin for today :)
Will post more once my blogger is up
Pradeep Reddy Lekkala