@Raj232
Here is an example of the premium / discount
Banknifty spot @45160, the fair value of 45200 pe should be 40 Rs.
But it is trading at Rs. 150, so it has a premium of 110 Rs.
If it was trading at Rs. 10, we would say a DISCOUNT of Rs. 30.
I am not sure how to interpret it, Sometimes it shows the trend, sometimes antitrend. So at present it is just an observation.