Derivative Insights - F&O - April 28, 2020 - Geojit

The Nifty April futures closed 9295.15 with a gain of 1.72% or 156.9 points on Monday. Open interest of the current month expiry declined by 17.15 lakh shares indicating liquidation of long positions in the markets. Nifty future traded at a premium; stood at 12.85 points against a discount of (-)16.15 points on Friday. Nifty's VIX fell nearly 3% to close at 38.0425 versus 39.1175 on the previous day. FIIs were buyers for fourth consecutive day in the F&O segment; bought derivatives worth Rs 1827.42cr on 27 Apr as per provisional figures. On the open interest front, they reduced increased exposure in Future index long by 17.44% ahead of monthly expiry while reduced short position by 19.18% in future index. They were also seen accumulating positions across all segment of Index options.

Nifty outlookWith expiry approaching liquidation and covering remained the dominant theme, albeit at a slow pace with price range being narrow and as technical breakouts have not quite unfolded with the expected momentum. Calls are most active at the ATMs or the very near OTMs. Puts too have not started moving out of OTMs despite a soft nudge on the upside, suggesting that a breakout move is very much warranted. But, should Nifty not make much headroom beyond 9600, expect the liquidations from the OI heavy9500-9600 & 10000 strikes to hammer Nifty.

Source : Equity Bulls

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