Traders Pile On Long Positions As Nifty Hits Lifetime High
The India VIX fell over 11%, to close at 12.4 indicating lower put option premiums.
The Nifty 50 index advanced 1.7 percent on Tuesday hitting a new lifetime high of 9,122 on an intraday basis and even managed to close above the 9,000-mark for the first time on record. The index, which was trading in a tight range for the last couple of weeks, soared to record highs after Prime Minister Narendra Modi’s party secured an impressive mandate in the country’s largest state.
The 50-share index’s March futures added 7.9 percent in open interest towards fresh long positions. The Nifty Bank index also gained 1.6 percent, to record high, spurred by advances in ICICI Bank, HDFC and Yes Bank. Its futures added 12.2 percent in open interest towards fresh buying. Foreign institutional investors bought index futures worth Rs 1,837 crore on a net basis.
The India Volatility Index (VIX) fell over 11 percent to 12.4, indicating contraction in put option premiums. Maximum open interest is now with the 8,900 put and 9,200 call in broadly indicate a near-term range for the Nifty.
FIIs bought 10,523 index call contracts and 13,102 index put contracts on a net basis.
