Traders Tread With Caution Ahead Of U.S. Election Week

Traders Tread With Caution Ahead Of U.S. Election Week
A financial trader monitors reaction of global markets (Photographer: Jason Alden/Bloomberg)

Derivatives traders in Indian equity markets remained cautious on Friday ahead of U.S. presidential election week. The Nifty 50 index declined by 0.6 percent and tested 8,400 on the downside. Its November futures reflected traders' reluctance of taking new positions as it added only 1.2 percent in open interest. The Nifty Bank index also declined by 0.6 percent with its futures adding nearly 2 percent showing fresh short positions. Foreign Institutional Investors (FII) sold index futures worth Rs 968 crore.

The India Volatility Index rose 2.3 percent to 16.84. There was substantial writing in the 8,200 put and the 8,500 call. Maximum open interest remained with the 9,000 call and the 8,400 put. FIIs bought 40,022 index put contracts and unwound 3,528 index call contracts on net basis which indicated more caution.

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