Derivatives Outlook - April 16, 2020 - Geojit

The Nifty April futures closed at 8930.30 with a loss of 0.89% or 80 points on Wednesday. Open interest of the current month expiry declined by 6.10 lakh shares indicating liquidation of long positions in the markets for a second day. Nifty's VIX slipped more than 3% to close at 49.7350 versus 51.4575 on Monday. On the options for April series, maximum Call OI is seen at 9000 strike whereas on the other side, maximum Put OI concentration was seen at 8500 strike. FIIs were buyers for a third consecutive day in the F&O segment; bought derivatives worth Rs 1129.61cr on 15 Apr as per provisional figures. They added long positions in index futures by 14.96% while reducing exposure in short positions by 13.31%.

The increase in index future longs and reduction in index future shorts by FIIs has come against yesterday's run of the play, which saw turbulence, putting upside prospects into doubt. FIIs were also seen adding more on the short side along index calls and puts ahead of weekly expiry today. There has been unwinding in longs across calls, which is justifiable, given the giant leaps in the last few days, but put shorts look sticky, though there has been some covering. There is not much to indicate, atleast yet, to suggest that traders are preparing for a directional fall, but upside views are indeed getting a reality check.

Source : Equity Bulls

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