Following a two-day drop, Indian equities regained some momentum on Wednesday. The Nifty 50 index climbed 0.1 percent with marginal decline in its futures open interest. The Nifty Bank index, which gained 0.7 percent, saw its September futures fall by less than 1 percent.
Foreign institutional investors (FII), however, took fresh short positions in index futures with selling worth Rs 551 crore on net basis.
The India Volatility Index fell 3 percent to 14.76 after index option premiums contracted owing to lack of considerable movement on the indices.
Maximum open interest in calls remained at the Nifty September 9,000 strike. However, the maximum open interest in puts shifted back to 8,500 from 8,600. This was on account of writing of 4 lakh shares in the 8,500 put.
FIIs bought 18,410 index put contracts on net basis and unwound of 1775 index call contracts indicating expectations of weakness in the near term.