Shorts Covered In Nifty Bank Even As FIIs Buy Index Futures
FIIs Bet Evenly Between Index Calls And Index Puts
Major Indian equity indices retreated on Friday owing to weakness in information technology stocks. The Nifty 50 index declined 0.4 percent to close at 8,244 with little change in its January futures open interest.
The Nifty Bank, which gained 1 percent, saw further short covering after its January open interest fell by over 8 percent in trade.
Foreign institutional investors bought stock futures worth Rs 510 crores on a net basis. India Volatility Index declined further by 0.9 percent to close at 14.91, indicating contraction in option premiums.
Maximum open interest remained with the 8,000 put and the 8,400 call to broadly indicate a near-term range for the Nifty. FIIs once again placed their bets evenly in index options where they bought 10,621 index calls and 12,244 index puts on a net basis.
Just Dial remained active with its stock price falling by over 5 percent with a drop of nearly 14 percent in its open interest, indicating long unwinding. Divi’s Labs retreated 3.5 percent saw its January open interest surge by 15 percent indicating fresh short build-up.
