How can I take advantage of price difference between spot and futures?

F&O
1

I was checking the spot and futures price of stocks and noticed that some them have price differences. In the case of Coal India the futures contract is trading at a discount to the spot. Is there anyway I can trade this difference? Is there an arbitrage opportunity here? I’ve also read a little bit about of Stock Lending & Borrowing Mechanism (SLBM), how does that fit into the picture?

Difference based on closing prices as of Feb 2nd.

Company Futures Price Spot Price Basis %
PVR 1319.15 1302.15 17 1.31
RNAVAL 39 38.55 0.45 1.17
SYNDIBANK 67.75 67.15 0.6 0.89
NIITTECH 797 790 7 0.89
CANFINHOME 430.6 426.9 3.7 0.87
IDBI 59.15 58.65 0.5 0.85
MOTHERSUMI 355 352.05 2.95 0.84
CHENNPETRO 386 382.9 3.1 0.81
DALMIABHA 2852 2829.35 22.65 0.8
COALINDIA 282.35 290.35 -8 -2.76
OIL 334.2 345.65 -11.45 -3.31
NHPC 26.85 27.85 -1 -3.59
NATIONALUM 67.25 70 -2.75 -3.93
BPCL 457.55 477.15 -19.6 -4.11
RECLTD 139.25 145.4 -6.15 -4.23
IOC 387.5 408.65 -21.15 -5.18
3

You can.

Just take the example of PVR. Sell Future at 1319.5 and buy spot at cash @1302.15 and hold it till future expiry. In any case u will pocket the 17 points difference because on the day of expiry future price will be equal to cash price. you can square off both at say 3.15PM

Notice the % return is not 1.31 as given by you, it is lesser because u need a margin amount to short future.

4

Is there any screener available to filter out the scrips with such difference ?