Caught In Range-Bound Trade Nifty Fails To Hold 8,800
Major Indices Continue To Consolidate Amid Average Turnovers
Major Indian equity indices continued to remain range-bound on Friday with the Nifty 50 index closing at 8,793. Yet again, there was little change in its February futures open interest. The Nifty Bank index advanced 0.4 percent with its futures adding 1.8 percent in open interest, suggesting more buying. Foreign institutional investors (FII) bought index futures worth Rs 243 crore on a net basis.
The India Volatility Index retreated 0.4 percent to close at 13.17 reflecting small contraction in option premiums. The 9,000 call and the 8,800 put saw the most amount of writing. Maximum open interest remained with the 9,000 put and 8,500 call to broadly indicate a near-term range for the Nifty. FIIs bought 13,027 index puts and 11,990 index calls on a net basis.
Shares of Power Grid Corporation of India Ltd fell 1.2 percent on Friday with its open interest gaining 11 percent showing accumulation of fresh short positions. Shares of Bata, which corrected 3 percent in trade, witnessed decline of 15.5 percent in open interest indicating unwinding of long positions.