Indian equity markets took a breather posting a record rally on Budget-day. The Nifty 50 Index advanced 0.2 percent on Thursday, to close at 8,734. Its February futures continued to accumulate long positions as its open interest (OI) increased by 3.8 percent. The Nifty Bank too consolidated, declining 0.2 percent with its futures adding 2.4 percent in OI. Foreign institutional investors sell index futures worth Rs 259 crore on a net basis.
The India Volatility Index (VIX) retreated by 3.2 percent to close at 13.52, the lowest in four months. This indicates further contraction in option premiums reflecting expectation of consolidation in the near term.
Most activity was witnessed in the 8,700 call which saw unwinding of positions and the 8,700 put which saw writing through addition of over 9 lakh shares in OI. Maximum open interest remained with the 8,500 put and 9,000 call to broadly indicate the near-term range for the Nifty.
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