Nifty Moves Out Of Consolidation Mode
Nifty Moves Out Of Consolidation, Marches Higher
Indian equities continued display resilience despite low but sustained foreign institutional outflows in the cash segment with the benchmark hovering around two-month highs on Wednesday. The Nifty 50 index advanced 1.1 percent to close at 8,380. Its futures added 3.5 percent in open interest indicating fresh buying.
The Nifty Bank index outperformed, climbing 2 percent with its futures adding 10.5 percent in open interest reflecting fresh long positions taken.
Foreign institutional investors (FII) bought index futures worth Rs 744 crore on a net basis.
The India Volatility Index (VIX) declined 2.5 percent to close at 14.8 indicating contraction in option premiums owing to writing seen especially in index puts. The 8,300 put saw the most amount of activity and addition in open interest. Maximum open interest remained with the 8,000 put and the 8,400 call broadly indicating a near-term range for the Nifty.
Shares of Jindal Steel and Power gained nearly 9.5 percent with its futures open interest surging over 15 percent implying fresh long positions. This was followed by DCB Bank, which gained over 3 percent, but its futures gathered another 22 percent in open interest also indicating fresh buying.
