The Nifty 50 Index failed to reclaim the 9,000-mark and eventually closed below 8,900 on Thursday. The index retreated 0.5 percent with its futures open interest falling by 1.5 percent to show unwinding of long positions.
The Nifty Bank index declined over 1 percent with its futures open interest similarly falling by 5.6 percent indicating long unwinding. Foreign institutional investors (FII) bought index futures worth Rs 874 crore on a net basis.
Despite a fall in the indices, the India Volatility Index (VIX) retreated 1.6 percent to 13.36 indicating further contraction in option premiums. Most amount of writing was seen in the 9,000 and 8,900 calls. This means further strengthening of 9,000 as resistance in the near term.
Maximum open interest remains with the 9,000 call and the 8,800 put to indicate near term range for the Nifty. FIIs bought 3,359 index call contracts and 1,912 index put contracts on a net basis.
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