FIIs Hedge Long Positions In Index Futures With Index Puts
Indian shares snapped a four-day gaining streak on Thursday with the NSE Nifty losing 0.4 percent to close just below the 8200-mark. The 50-share index’s December futures added 3.6 percent in open interest, pointing to a fresh build-up in short positions.
The Nifty Bank index declined 1.2 percent with its futures adding 2.8 percent, reiterating the fresh selling. Foreign institutional investors (FIIs) bought index futures worth Rs 707 crore on a net basis. FIIs added 10,265 long positions and unwound 834 short positions in index futures.
The India Volatility Index or VIX fell 1 percent reflecting a lack of big changes in option premiums. Maximum open interest remained with the 8,300 call and the 8,000 put, indicating the near-term range for the Nifty. FIIs added 13,763 index puts and unwound 290 index calls on net basis.