Derivatives Outlook - April 20, 2020 - Geojit

The Nifty April futures closed at 9311.30 with a gain of 3.05% or 275.85 points on Friday. Open interest of the current month expiry increased by 1.17 lakh shares indicating addition of long positions in the markets. Nifty future traded at a premium of 44.55 points against 42.65 points on the last day. Nifty's VIX slipped more than 7% to close at 42.5925 versus 46.0950 on the previous day. FIIs turned to sellers after four days of buying in the F&O segment; sold derivatives worth Rs 561.88cr on 17 Apr as per provisional figures. They reduced exposure in both future index longs and short positions while buying were seen across all the segment of index options' front with Put shorts increased by 18.79% and Call longs increased by 10.92%.

There is long addition along 9500 and 10500 call strikes, as well as short covering from 9000, which is in line with upside attempts seen in the index recently. But with no large upsides occurring yet, and with expiry approaching, the recent build up is likely to become a liability and accelerate downside in the event of a turn lower, which is now increasingly becoming likely. Also note that 10000 which has high OI is seen call writing. Upside hopes now depend on 9500 strike being overcome.

Source : Equity Bulls

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