Derivative Insights - April 24, 2020 - Geojit

The Nifty April futures closed at 9296.75 with a gain of 1.18% or 108.45 points on Thursday. Open interest of the current month expiry declined by 2.99 lakh shares indicating short covering in the markets. Nifty future traded at a discount of 17.15 points against a premium of 1 point on the previous day. Nifty's VIX slumped by 8.39% to close at 39.2300 versus 42.8225 on the previous day. FIIs were buyers for second straight day after three days of sell-off in the F&O segment; bought derivatives worth Rs 1252.27cr on 22 Apr as per provisional figures.

Nifty Outlook

With a week to go before April series expires, the reduction in exposure of both index future longs and shorts by 4.76% and 3.88% respectively is sign that directional bets are not strong, even though reduction is not substantial. Only near the money calls saw long addition, while ITM saw short covering, OTMs saw short build up, all of which lean more towards a expiry oriented play, with lower expectation of a range expansion. Put activity also suggest that 9000-9300 is a stick region, which is where Nifty is expected to be in the first half.

Source : Equity Bulls

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