Foreign Funds Place Bearish Bets As Nifty Consolidates Around 8,400-Mark
The India VIX fell 1.4% to close at 15.18 indicating contraction in option premiums.
The NSE’s Nifty 50 index closed within range 20 points from the 8,400-mark for a sixth straight session. Its January futures added 4.5 percent in open interest (OI) showing further accumulation. The Nifty Bank index advanced 0.5 percent and added 2.4 percent in OI.
Foreign institutional investors sold index futures worth Rs 895 crore on a net basis. This was reflecting in FIIs going short on 19,350 index futures contracts as against long positions added in 5,879 contracts on a net basis.
The India Volatility Index fell 1.4 percent to close at 15.18 indicating contraction in option premiums. Maximum OI remained with the 8,500 call and 8,300 put indicating a narrow near-term range for the Nifty. Considerable unwinding was witnessed in the 8,200 put which shed 5.8 lakh shares in OI.
FII activity was relatively subdued in index options. FIIs bought 581 index call contacts and unwound 4,681 index put contracts on a net basis.
