Major Indian equity indices continued to consolidate with the Nifty 50 index gaining marginally to close above 8,400-mark on Monday. Its January futures saw an increase of 1 percent in open interest (OI). The Nifty Bank index continued to see accumulation of long positions with the index gaining over 1 percent and its futures OI adding over 7 percent. Foreign institutional investors (FIIs) bought index futures worth Rs 119 crores on a net basis.
Despite the range-bound trade, the India Volatility Index (VIX) gained 4.8 percent to close at 15, indicating expansion in option premiums. Most writing was seen in the 8,200 and 8,300 puts indicating building of a base. Maximum open interest remained with the 8,000 put and the 8,400 call, which broadly indicates a near-term range for the Nifty. FIIs bought 13,478 index put contracts and 8,754 index call contracts on a net basis.
Futures of Dewan Housing Finance were most active and saw fresh buying with its OI surging nearly 10 percent. HDIL, which gained 3.4 percent, also saw its OI gain nearly 18 percent indicating fresh long positions.
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