FII Sell Index Futures But Buy Index Calls With Nifty At 8,700

The Nifty 50 index managed to close just shy of the 8,700 mark courtesy gains in Adani Ports, ICICI Bank and Hindalco. Moreover, the index’s October futures added 3.6 percent in open interest indicating fresh buying.

The Nifty Bank index gained over 1 percent but there was little change in its futures open interest. Foreign institutional investors (FII), however, continued to add short positions in index futures to the tune of Rs 396 crore on a net basis.

The India Volatility Index (or VIX) fell 3 percent to 14.16.

The 8,600 Nifty October call saw unwinding of positions as its open interest fell by 5.3 lakh shares. There was writing seen in the 8,700 Put with an addition of 8.3 lakh shares in open interest. Maximum open interest remained in the 9,000 Call but shifted from the 8,500 Put to the 8,600 Put.

FII added 18,504 index call contracts and unwound 26,949 index put contracts on a net basis.