If I short sell future of a stock and stock is going to give Rs 8/- as dividend next day then stock prise will be adjusted by Rs 8/- so can I say that because of this adjustment future’s price will correct and I will hv almost 8 point profit from my short position???Plz put some light on this
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The price of future will already be discounted so no point.
That’s not how it works.
If any company announces extraordinary dividend (>2% of the CMP), on the ex-date, the F&O contracts are adjusted according to the adjustment factor. More on this here:
given how often this question is asked, maybe you should consider pinning it 
how naive are market makers 
If you’re holding a short future position, you will generally be at a loss.
Take the example of the TCS extra-ordinary dividend case (Rs. 75 per share) with ex-date 16-Jan-2023:
Below are the TCS JAN Future closing prices:
12-Jan-2023: 3351.15
13-Jan-2023: 3387.85
…weekends…
16-Jan-2023: 3337.80
On ex-date, Futures Base Price: Reference Rate - Adjustment Factor, i.e. 3387.85 - 75 = 3312.85
This means on 13th Jan, your short TCS is exited at 3387.85, and on 16th Jan (ex-date), the fresh short position is created at 3312.85 (base price) due to adjustment. With this, you’re at a loss since the closing price is higher (3337.80) even when the day is in your favor (bearish view):
Calculation Aspect:
- MTM of Short TCS JAN FUT on 16-Jan-2023 = (13th Closing - 16th Closing) - Extraordinary Dividends = (3387.85 - 3337.80) - 75 = Loss of 24.95 points
OR
- MTM of Short TCS JAN FUT on 16-Jan-2023 = (13th Closing - Adjustment Factor) - 16th Closing = (3387.85 - 75) - 3337.80 = Loss of 24.95 points
