Reason for NF Trading in Discount

Nifty Futures is trading in Discount of 40 Point to Nifty Spot. Nifty has rallied almost 680 from the Lows of 6826 on Budget day and did 3 back to back 100 pointer day but still trading in discount.



If Nifty future is trading higher than nifty spot, then nifty future is trading with premium.
Second case, if nifty future trades lower than nifty spot level, then we conclude nifty future is trading with discount.

Reason for Futures trading at Discount

HDFC F –1113 HDFC — 1121

Nifty F –7423  Nifty S –7464

Many nifty companies has kept board meet this month for dividends  so in expectations of heavy dividends from them which will come in cash, Nifty companies are trading in discount and same is getting reflected in Nifty Futures.

No Conspiracy theories are involved 🙂


Options of Nifty are linked to Nifty future hence their price varies as per Nifty Future and not as per Nifty. This is for traders trading in Nifty Options, use NF to plan your trades.

280 Companies have announced record date in march for dividend, Mentioning Few companies which I got from friend below




  1. Sameer Deshpande said:

    Loom forward to your analysis. Thanks for the response

    March 6, 2016
  2. Bramesh said:

    Will try to analyze technically and update..

    March 5, 2016
  3. Sameer Deshpande said:

    Hi Bramesh! Great analysis as usual. A quick one, Wockhardt pharma is buzzing and most brokers suggesting an upside with targets of 1100 in few days. With recent results and compliance issues I don’t see any reason why the stock should rise. Your thoughts?

    March 4, 2016
  4. anmpatel said:

    Only one question
    Will it gain premium or expire in discount only…? Any idea.. because when bought as per jnsar it was 30 point premium and now 40 points discount… so 70 point loss without doing anything!!!!

    March 4, 2016
  5. Ram Nene said:

    Bramesh , The logic can be Since Dividend tax of 10% is announce from 1st April 2016 , Many companies which have high promoter stake might declare dividend in march itself and all this Rally after budget is based on this assumption (I doubt )
    well than April or May will be “Jack fell down and Jill came tumbling after “

    March 4, 2016
  6. Achu Mon said:

    Good Boss Covering Every aspects of stock market,Sir what will be the march expiry ?

    March 4, 2016
  7. Ram Nene said:

    Dont agree with above logic doesn’t make any sense , Also in NIfty futures there are currently 9.9lakh Buyers and 6.9 lakh sellers .

    It can Happen at current level there are no serious Buyers and lots of Buy orders are level below may be 100-150 correction, At the same time there is Big guy selling at currently level generally a Institutional Shorter.

    March 4, 2016

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