Derivative Insights - June 2, 2020 - Geojit

The Nifty June futures closed at 9791 with a gain of 3.13% or 296.9 points on Monday. Open interest of the current month expiry added by 4.48 lakh shares indicating addition of long positions in the markets. Nifty future traded at discount of 35.15 points against a discount of 86.20 points on Friday. Nifty's VIX rose by 1.73% to close the day at 30.7425 versus 30.2200 on the previous day. FIIs turned to sellers after four days of buying in the F&O segment; sold derivatives worth Rs 581.58cr as per provisional figures on 29 May. On the open interest front, FIIs added positions in index future longs by 3.39%.

Nifty Outlook

Positive bets of FIIs along index options is at the highest in 50 days, ringing caution to upside views. Notably, FIIs also added 10% to index future shorts yesterday. On the broader market, 10300 and 9900 strikes attracted the largest long build up, while the most active 10000 and 10500 strikes were seeing short covering. In puts, new additions yesterday were along short addition, with a tendency to follow spot, but the most active 9000 strike ended the day at sixth position in terms of OI build up suggesting that, direction is more actively debated along put traders. This turbulence was not noticed yesterday as the vertical rise in Nifty took centre stage, but with VIX turning higher, a rise in put longs could be more visible today.

Source : Equity Bulls

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