Two numbers help us understand what is happening in Index Futures: contracts and turnover.
Contracts tell us how many positions were traded, while turnover tells us the total value of those trades.
When both numbers fall, it generally means that trading activity is slowing down.That is what we see in the data for 2025 and 2026.

Index Futures are used by traders and institutions to take positions on the Nifty or Sensex, and also to hedge their existing portfolios. A significant part of the activity comes from professional, proprietary and computer-based traders, so changes in their participation can have a large impact on overall volumes.

The Downtrend in Activity

April and May 2025 were among the busiest months, with around 42–45 lakh contracts.
Activity then gradually declined and settled around the 26–30 lakh range during the second half of 2025.
The start of 2026 was somewhat stronger, with 34–35 lakh contracts in January and February.
Then March saw a sharp jump to 50.5 lakh contracts, the highest level in the entire period.
But it did not last.

By August 2026, contracts had fallen to 17.6 lakh, the lowest level in the data.
Turnover tells the same story. August 2026 recorded around ₹2.88 lakh crore, also the lowest in the period and well below the 2025 low of around ₹5 lakh crore.
So, August 2026 did not just see a fall from the March high. It went below the lowest levels seen during 2025.

Why Did March See Such High Activity?
March needs to be looked at differently.
The market was falling almost continuously through the month. Such a market usually brings higher volatility and more hedging activity.
Large investors can use Index Futures to protect their equity portfolios when the market falls. When the decline continues for several weeks, this can create a large number of futures trades.
That helps explain the 50.5 lakh contracts seen in March.

In April, the market stopped falling and started forming a base. As volatility and the need for urgent hedging reduced, futures activity also came down.
So March looks more like a market-condition-driven spike than the start of a new rising trend.

STT Added Another Pressure
From 1 April 2026, STT on futures increased from 0.02% to 0.05% of traded value.
The increase matters particularly for traders who make a large number of trades with small margins, such as arbitrage, high-frequency and proprietary traders.
There was also a decline in the share of proprietary trading in equity futures, from 32.7% in March to 28.3% in April.
But it would be too simple to say that STT alone caused the fall. The market had also moved from a sharp decline into a more stable phase, which naturally reduced some of the activity.

Then Came CAS
By July, tighter trading rules and funding conditions had added further pressure on some leveraged and proprietary participants.
Then, on 3 August 2026, the Closing Auction Session (CAS) started in the cash market.
The CAS runs from 3:15 PM to 3:35 PM, while Index Futures continue trading until 3:40 PM.
CAS does not directly change the futures market. Its impact can come indirectly through the cash market because futures, hedging and arbitrage strategies are closely linked to the underlying stocks.
Changes in closing liquidity and price-setting may lead some traders to square off earlier and reduce activity near the close.
Why August Was Different
August was the first full month after CAS began, but it was also a relatively quiet and range-bound month.

So several factors came together:
Higher STT + tighter rules and funding + changes in closing behaviour + low market volatility.
The result was the lowest Index Futures activity in the entire period:
17.6 lakh contracts and ₹2.88 lakh crore turnover.
It would therefore be too early to attribute the August decline to CAS alone. The fall appears to be the result of several factors working together.

The Takeaway
The bigger story is that Index Futures activity has gradually declined from the high levels seen in early 2025.
March 2026 was an exception, driven by a sharp market decline, higher volatility and increased hedging.
After that spike, activity continued to weaken and eventually fell below the lows seen in 2025.
The higher STT, tighter rules and funding conditions, changes in end-of-day behaviour and a quieter market have all contributed to this decline.

@Anuj Mehta
Hi Sir,
You can create this condition using the System Builder and RS Scanner feature.
Go to System Builder → from the dropdown select Ratio → click on Create System Builder → then click Add → Indicator → select Supertrend → set Expression = 1 and save it.
After that, go to RS Scanner → Ratio Scanner. In the Conditions dropdown, select MY, and then apply the Supertrend condition you created.
You can then run the scan, and it will filter stocks based on your required RS Supertrend bullish crossover condition.
Hope this helps.

This comparison highlights how different charting methods Line Break, Point & Figure, Candlestick, and Renko can still reveal the same underlying market structure.
In this case, an Inverted Head & Shoulders pattern appears consistently across all four charts at a similar price level.
Despite differences in how price is plotted (time-based vs. price-based), the core price action remains the same.

Looking at NMDC across multiple Point & Figure (P&F) timeframes, the picture becomes clear.
Higher box size shows a Turtle Breakout, while lower box sizes show rising support with higher lows, along with a 45° diagonal breakout, a simple structure of support holding and then breakout.
On the 0.5% chart, the structure is strong, but a large anchor column of X is visible. Entering here may not offer a favorable risk-reward, so it’s better to wait for a follow-through buy signal.
When a stock looks good on all timeframes, it means the trend is aligned and more reliable, not just a short-term move.

Sharing a view on Shriram Finance through Relative Strength (RS) Point & Figure charts.
Both ratios Shriram Finance vs Nifty 500 and Shriram Finance vs Definedge Finance, Housing, NBFC index are showing a breakout on the 3x3 P&F chart, which is generally considered a long-term structure.

This indicates that the stock has been strengthening relative to both the broader market and its sector. At the same time, the current move looks a bit stretched, so some consolidation or retracement in the short term could be possible, while the broader structure remains intact.

If the breakout sustains, it may continue to reflect relative strength. However, if it fails and moves back into the previous zone, the stock could start moving more in line with the indices or may even underperform.

Just sharing an observation from the charts for discussion and learning purposes.

Re: Chart of the Day

The structure shows signs of base formation. Using Point & Figure (P&F) counts, the chart is analyzed through both horizontal and vertical methods. The vertical count helps in understanding the strength of the move, while the horizontal count reflects the extent of the base formation — together highlighting important price zones where activity can be observed. Overall, this approach helps in studying price structure in a simple way while staying flexible with how the price evolves.

Looking at Sarda Energy on the Point & Figure (1x3) chart, the stock is currently consolidating after a strong uptrend and forming a healthy base.

An anchor column is visible, followed by a follow-through breakout, showing continued strength. The chart has also formed a spread pattern breakout, which is a 7-column structure — the 3rd column falls short, the 5th and 7th columns form at similar levels, and the final column gives the breakout, showing gradual accumulation before the move.

Horizontal counts have also been plotted, which give an idea of the possible zones where the move can extend.

Overall, the structure shows base building followed by a breakout, which can be watched going forward.

If the pattern continues, strength may sustain. However, if the price closes below the anchor column, it may indicate weakness and the trend could change.

Sharing this as a chart-based observation for learning and discussion.