Indian equities continued to trade in a tight range on thin volumes on Wednesday. The Nifty 50 Index closed flat with its futures adding less than 2 percent in open interest. The Nifty Bank Index declined 0.6 percent however its futures added 12.7 percent in open interest, which indicates accumulation of short positions.
Foreign institutional investors (FII) bought index futures worth Rs 181 crore on a net basis.
The India Volatility Index (VIX) retreated 0.4 percent owing to lack of activity, indicating contraction in option premiums. Maximum open interest remained with the 8,000 put and 8,200 call which broadly represents a near-term range for the Nifty.
Most writing was seen in the 8,100 and 8,200 Nifty puts for January. FIIs placed their bets evenly in index options and bought 12,887 index call contracts against 11,691 index put contracts on net basis.
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