Derivative Insights - April 9, 2020 - Geojit

The Nifty April futures closed at 8750.55 with a loss of 1.41% on Wednesday. Nifty's VIX ended flat by 0.85% at 52.2425 versus 51.8000 on the previous day. FIIs changed to sellers after six consecutive days of buying; sold derivatives worth Rs 2051.12cr on 08 Apr as per provisional figures. They also added short positions by 3.43% in index futures while liquidated longs by 8.70%. Indian markets to remain closed on Friday on account of Good Friday.

The tentativeness seen yesterday near 9000, looks to have prompted FIIs to unwind index futures positions by 8.7 %, while raising index future short positions by 3.4 %. The liquidation, however is only minor considering the 50% bump yesterday, and hence yesterday's shedding is roughly only 25% of what was added on the previous day. Negative bets have risen, with Index put longs and cal shorts positions going up by 5.39 and 8% respectively, but so have index put shorts which went up by 6.55, but index call longs were cut by a trifle 0.55%. In all, the re distribution does not reveal a complete shift in bias, atleast not yet. Meanwhile, option spectrum shows that the call shorts that have now flown back and perched on to the 9000-9500-10000 looks to be fluid, but the positions on the put side looks a bit more sticky, and it would require a convincing push beyond 9000 to hasten the pace of long liquidation that has begun at 9500 strike. In all, the stage is more neutral than it was yesterday, but not much to suggest directional downsides; atleast not yet.

Source : Equity Bulls

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