Nifty Looks To Defend 8,700 Amid Spike In Volatility
The Nifty Bank index lost 1.5%, but its futures open interest fell by only 0.5%.
Weakness persisted in the Nifty 50 as it fell 1.2 percent Monday, the most in nine straight trading sessions. Its futures saw an overall decline in open interest by 2 percent, indicating unwinding of long positions.
Traders remained cautious of carrying forward their positions, indicated by rollovers at 27 percent, lower than the previous 3-month average of 34 percent. The Nifty Bank index lost 1.5 percent, but its futures open interest fell by only 0.5 percent. Rollovers in the index stood at 23 percent, again lower than the previous 3-month average of 27 percent.
Foreign Institutional Investors (FII) sold index futures worth Rs 1120 crores on net basis. The India Volatility Index (VIX) rose 10 percent to 14.56 indicating expectations of large moves on the indices.
With the Nifty 50 index falling below 8,800, the 8,800 put saw unwinding of 13.9 lakh shares where are the 8,800 call saw writing of 17.6 lakh shares. Maximum open interest continued to remain in the 9,000 call and 8,500 put. FIIs bought 25,537 index put contracts and unwound 7,112 index call contracts on net basis indication caution in the near term.
