For the eighth straight session, major Indian equity benchmarks continued to trade within a tight range. The Nifty 50 index advanced 0.1 percent on Monday, but its February futures saw accumulation of 2.9 percent in open interest. The Nifty Bank Index, similarly, gained marginally but its futures open interest added 3.2 percent. Foreign institutional investors (FII) bought index futures worth Rs 754 crore on a net basis.
Benchmark indices may have remained quiet but the India Volatility Index (VIX) gained 3.9 percent to close at 13.69, indicating expansion in option premiums. Most writing was seen in the 8,800 and 8,700 Nifty puts. Maximum open interest remained with 9,000 call and 8,500 put to broadly indicate a near-term range for the Nifty. FIIs bought 8,743 index calls and unwound 3,778 index puts on a net basis.
Disappointing earnings led to shares of SRF Ltd falling 8.9 percent with its futures open interest surging 45 percent, indicating accumulation of short positions. Bank of Baroda corrected 10.2 percent, with its futures open interest adding 24 percent reflecting fresh selling.
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