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