Traders Buy Index Futures As Nifty Edges Towards 9,000

Traders bought index futures on Wednesday as major Indian equity indices inched towards fresh life time highs. The Nifty 50 index gained 0.75 percent to close near 8,946. Its March futures saw open interest increase by 5.4 percent reflecting fresh long positions taken by traders.

The Nifty Bank index also gained nearly 0.8 percent but its futures saw relatively less accumulation of 0.5 percent in open interest. Foreign institutional investors (FII) bought index futures worth Rs 169 crore on a net basis.

The India Volatility Index (VIX) retreated 1.6 percent to close at 13.57 indicating contraction in option premiums mostly due to writing in put options as indices seek higher levels. Maximum open interest remains with the 9,000 call and 8,800 put for now. FIIs bought 12,670 index call contracts and 18,147 index put contracts on a net basis.

Proprietary desks, however, bought 8,572 index call contracts and unwound 2,560 index put contracts on a net basis as they seek new levels on indices.