Nifty Range Intact but First Signs of Weakness Emerge
Fresh selling was observed in the Nifty 50 index as it declined 0.4 percent with open interest across all futures contracts increasing 2.7 percent.
Traders rolled over 38 percent of their August contracts. This is 31 percent higher than the average of previous three expiries, with another three days left before the August series closes.
Nifty Bank, which declined 0.3 percent, also saw short build-up with an addition of 5.8 percent towards open interest.
Further writing was seen in Nifty 8,700 Call with addition of over 11 lakh shares in open interest. 8,700 and 8,800 have become crucial resistances during expiration of August contracts.
On the lower end, 8,500 Puts remains a firm base but unwinding of 8,600 Puts seen as the Nifty 50 index declined by nearly 38 points on Monday.
Hindustan Petroleum Sees OI Build-up
Hindustan Petroleum Corporation (HPCL) reported healthy earnings after market hours. It saw an open interest increase of over 7 percent, though the stock had declined by 2.5 percent on Monday. A bonus announcement of 1 share for every 2 held by shareholders is likely to improve investor sentiment towards the stock.