Derivative Insights - April 30, 2020 - Geojit

The Nifty April futures closed at 9549.15 with a gain of 1.61% or 151.4 points on Wednesday. Open interest of the current month expiry declined by 10.73 lakh shares indicating liquidation of long positions in the markets. Nifty future traded at discount; stood at (-)4.20 points against a premium of 16.85 points on Tuesday. Apr month rollover stood at 43.22% yesterday as compared to 41.69% on the previous day. Nifty's VIX fell more than 4% to close at 33.8375 versus 35.3550 on the previous day. FIIs were buyers for sixth consecutive day in the F&O segment; bought derivatives worth Rs 1878.96cr on 29 Apr as per provisional figures. On the open interest front, ahead of the monthly expiry, they reduced exposure in both Future index long and short by 3.22% and 1.66% respectively. Indian markets to remain shut on Friday on account of Maharashtra day.

Nifty outlook

FIIs continue to hold more than 57% of its index future positions in longs, which is in stark contrast to their position at the start of this month. But the proportion has eased yesterday, with longs coming off and shorts added, albeit in small amounts, with only a day to expiry. There has also been new additions to longs in the May contracts most of it coming along the OTMs, while puts have seen short build up in the ITMs. This will give courage for Nifty to breeze past 9600, the strike marked down yesterday as a stiff challenge. Yet, the additional longs added yesterday along 9550 through 10000 in the april series will weigh a bit on the upside momentum today, post the positive opening.

Source : Equity Bulls

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