Panic selling and heavy bull liquidation during the week ended May 15, saw the carryforward rates trade at a new low of 11 per cent before stabilising at 16 per cent annualised, for an average outstanding position of Rs 826 crore.

Of the 147 stocks offered during the session, only three attracted backwardation, mirroring the absence of short positions in the market.

Interestingly, ICICI Banking saw a huge carryforward purchase position of over 4.61 lakh shares, which saw the counter attract a backwardation of Rs 1.50 and stabilise at Rs 0.27 weighted average.

"In normal conditions if the badla rates hover in the band of 11-14 per cent, it is considered an excellent indication of a bull run," a BSE broker said. "However, lack of optimism in the market which fail to absorb the sound technicalvaluations, shows that the index should continue to hover in a lacklustre band," he added.

The fall in carryforward positions from the previous week's high of Rs 1,200 crore levels to a low of Rs 826 crore has led to the fall in the carryforward rates, given the fact that the supply of funds remained constant.

However, market participants said the growing interest to plough money in badla financing by even retail investors has led to a sharp rise in the supply of funds in the market. The favourite counters of the "big bull," Global Trust Bank attracted a carryforward charge of 15.69 per cent for a net outstanding carryforward position of 13.85 lakh shares.

However, ITC attracted a meagre carryforward charge of 3.24 per cent. The stock attracted a backwardation of Rs 4 during the initial stages of the session with a carryforward sale quantity of 4.70 lakh shares. Videocon International which hit the upper-end of the settlement filter on the NSE, attracted a carryforward charge of 15.99 per cent for aphenomenal badla volume of 22.75 lakh shares.

Among the pivotals, SBI and Telco attracted "seedha" badla charges of 15.55 per cent and 16.12 per cent respectively. Reliance is, at present, traded in the no-delivery category.