FIIs Dip Into Index Futures As Nifty Holds Steady Above 8,100
FIIs buy index puts as Nifty registers gains for 3rd straight day
Indian stocks ended higher after paring gains on Tuesday, with the advance in automakers offsetting losses in banking shares. The Nifty 50 index gained 0.2 percent with its December futures adding 2.3 percent in open interest, indicating further long positions. The Nifty Bank index declined by 0.3 percent while its futures open interest climbed 7.9 percent, pointing at the build-up of short positions.
Foreign institutional investors bought index futures worth Rs 615 crore on a net basis. FIIs added 10,739 long positions against 593 short positions in index futures, implying a positive near-term outlook.
The India Volatility Index (or VIX) declined 1.9 percent to close at 17.7 showing a contraction in option premiums as the Nifty consolidated.
The 8,200 call added 5.5 lakh shares whereas the 8,100 put added 8.3 lakh shares in open interest. The maximum open interest which broadly indicates a near-term range remained with the 8,300 call and the 8,000 put. FIIs placed their bets evenly in index options buying 14,748 index calls for 16,530 index puts on a net basis.
