Technical view by Nooresh

Market sees HIGHEST turnover on December expiry at 4.15 lakh crores. Derivative volumes the highest

Wow that seems that our benchmark indices are on a roll. But what we see is Nifty down 35 points and we are still below the high of 2008.

The link like this 

and many more which you will keep seeing every expiry are very well ignored.


This is a little break up of todays volumes.


Derivative Volumes



Index Futures -  14501.55 cr

Stock Futures  - 37639.97 cr

Index Options -  164408.21 cr

Stock Options -  11219.95  cr


Total Turnover - 227769.68   Crores


Index Futures - 306.25  cr

Index Options – 171920 cr

Equity Futures – 2.09  cr

Equity Options – 41 cr

Total Turnover – 172278.76 cr


According to me the real volumes are done in Cash Segment which is terribly low at 3000 crores odd for BSE and 13000 crores odd for NSE.


Now surprisingly the real volumes is not even 5% of the total turnover. What comes out is Options is the Highest Turnover.


As a matter of fact it is not. Because The Turnover which CNBC or Economic Times or Business Standard shouts is nothing but Notional Turnover figure.


For example -


One of the normal trades today could be buying a 5900 Call Option at 15 rs. So you have effectively paid a premium of 15 * 50 = 750 rs.


So ideally your turnover would be only 750 rs !!


But in terms of the notional calculation = ( Strike Price + Premium ) * lot size = (5900 + 15 ) * 50 = 295750


Now thats how we suddenly get to 1.65 lakh crores of Nifty Options traded which may not even be lesser than 1000 crores.

Out of this 70 % of the trades today were in the near strikes of 5900/6000.



Conclusion -

The TV anchors will keep shouting 4 lakh crores or 6 lakh crores and numbers will increase but in real terms the Cash volumes of not more than 20000 crores ( combined BSE/NSE ) is still much below the average of good times. There was also a time when BSE had beaten NSE on cash volumes :).

So next time you hear highest volumes just give it a skip :) and look at cash volumes.

Article by Nooresh Merani

Nooresh has written 2531 articles.

You can follow Nooresh Tech on Facebook and Twitter here.

{ 10 comments… add one }
  • Ashish December 27, 2012, 23:19

    Excellent Nooresh. Its nice to give some idea of how the turnover was calculated. Adding the strike price changes the whole equation. Good information shared :)

  • Umesh Kamath December 28, 2012, 16:03

    Dear Nooresh,

    Your view on Ptc India still dancing in 72-75 when is the breakout,as the liquidity is low and price is almost near to previous 52 weeks high.

    • Nooresh December 31, 2012, 10:35

      Continue to remain positive till it holds my closing stop of 70-71.

  • venkatesh December 28, 2012, 19:26

    Recently for the first time i traded in Bank nifty futures for 20 points and in the evening i received message from the exchange saying that you have traded Rs. 6 lakh odd and i was shocked to see that. Later i realised that it is their mode of calculation. I hardly got something in that trade.

    • Nooresh December 31, 2012, 10:34

      Well if you traded in futures you actually did 6 lakhs turnover as buy and sell.
      In options it would be notional.

  • Ashok Manek December 29, 2012, 17:22

    Excellent working Nooresh ……………very informative………….

    • Nooresh December 31, 2012, 10:34

      :) thanks for ur kind words

  • Anandha December 30, 2012, 20:59

    Thank you sir for sharing your knowledge on this.You always come with a new way of analysis which is not known to many people.Your unique way always prove you.


    • Nooresh December 31, 2012, 10:33

      Nothing new just stating the facts


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