Long positions taken in index futures earlier were sold as major equity indices retreated on Tuesday, ahead of the Reserve Bank of India's policy decision. Foreign investors and domestic traders participated in the unwinding, which was indicated by fall in Nifty Futures and Nifty Bank futures open interest.
Foreign investors sold index futures worth Rs 199 crore and unwound 2,416 contracts on a net basis. Consequently, open interest in Nifty's June futures fell 2.4 percent and that for Nifty Bank futures fell 7.5 percent.
The India Volatility index (VIX) gained 1 percent to indicate expansion in option premiums. Though the India VIX continued to hover near record low level, the gains indicate anticipation of slight increase in volatility in the near-term.
The 9,700 call was the most active with most accumulation in open interest. Maximum open interest lies with the 9,500 put and 9,700 call with broadly reflects a near-range for the Nifty.
Among the most active stock futures, shares of Adani Enterprises Ltd. gained over 9 percent in trade with its June open interest seeing a surge of 9.5 percent indicating fresh buying in its futures.
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