The nifty June futures traded as an unusually sharp 98.05 point discount to the nifty spot at close of trading Friday, led by FII liquidation of index futures- Nifty and Bank Nifty- and fresh addition of net shots by proprietary trades. While this might signal caution by certain market constituents, it could also result in shorts being squeezed and the market moving higher next week. The spot nifty closed at 9580.3 while the June futures ended at 9482.25.

 Clients covered some of their shorts but still sat on cumulative net shorts of 13,448 contracts on index futures. FIIs liquidated their long index futures cumulatively by 10,295 contracts even as they purchased a provisional Rs 1461 crore of equities on account of MSCI indices rejig. Proprietary traders added 6283 shorts on a net basis.

 Intraday the discount between cash and June Nifty futures widened from 14.95 points at the day's low to 98 points at days close.

 "The markets by the value of open interest are light and so, relatively minor selling could have resulted in the wide discount," said Rohit Shrivastava founder IndiaCharts "We Will have to wait till Monday to see whether we fall or get a short-covering rally."

 On Friday the 50 share benchmark gained 90.20 points, or 0.95%, to 9580.30. During the session, the index touched a high of 9598.85 and a low of 9376.90.