Hello forum,
I am fairly new to FNO. From what I have read, I understand the stock future’s price will closely track share price. But in case of PC Jewellers JUN 19 future, I find a considerable deviation, about RS 10, between the share price (about Rs 77) and Future price (about Rs 66). How does the furture pricing works? Appreciate if you can shed some light on this. Thank you.
In “bad” stocks like PCJEWELLER, INFIBEAM, JETAIRWAYS, etc this is kind of common
It may be as they are heavily shorted in FNO category
Whenever short covering happens, the futures will move more than the cash price also
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Surprised to see MINDTREE and INFY, rest stock are either which ran up too much recently (JUSTDIAL) or basically bad stocks like JET, PCJ.
Sometimes due to corporate action like dividend etc, also traders start to short in future. I am not very clear on this maybe some other member can shed a light.
Mindtree has rs 24 per share dividend and Infosys 10.50 per share and both have record date before June expiry.
Hi Newbie420,
Thanks for the clarification. ‘Bad’ stock means the ones that suffer too much volatility? I guess I can understand why JET is bad a bad stock. I also read that PCJ will exit FNO soon. Could this also be a reason?
PCJ and INFIBEAM both have fallen 90% from their highs, so they also come under the same category of bad stocks.
Thanks.
Trading futures is not at all easy thing to do and might be very risky for beginners. This is why it is always better to spend some time learning well these subject and also to spend some time on demo account practicing. It will save you from potential high loss
