Traders Signal Caution, Refrain From Large Bets As Nifty Remains Range Bound
India VIX gains in anticipation of state election exit polls.
Indian investors traded cautiously ahead of the exit poll results on Thursday, and the NSE Nifty 50 Index closed flat at 8,927. Its March futures added 2.7 percent in open interest indicating accumulation.
The NSE Nifty Bank Index advanced 0.2 percent with its futures shedding 5.4 percent in open interest reflecting unwinding of short positions. Foreign institutional investors (FIIs) sold index futures worth Rs 617 crore on a net basis. Not only did FIIs unwind 3,389 long positions in index futures but there was also a further addition of short positions of 5,518 of index futures on a net basis. This signals increasing caution from an FII standpoint.
The India NSE Volatility Index gained 2.2 percent to close at 14.39, signalling further expansion in option premiums. Maximum open interest in puts shifted to 8,700 from 8,800, while in calls, the open interest remained unchanged at 9,000. The put and call data broadly indicate the near-term range for the Nifty. FIIs bought 2,398 index calls and 3,276 index puts on a net basis.
