Derivatives Outlook - May 11, 2020 - Geojit

The Nifty May futures closed at 9236.65 with a gain of 0.35% or 32.4 points on Friday. Open interest of the current month expiry increased by 60,075 shares indicating addition of long positions in the markets. Nifty future traded at discount; stood at (-)14.85 points against a premium of 5.2 points on Thursday. Nifty's VIX fell by nearly 4% to close the day at 38.4075 versus 39.9300 on the previous day. FIIs were sellers for second straight day in the F&O segment; sold derivatives worth Rs 615.72cr on 08 May as per provisional figures. On the open interest front, in the future index long, FIIs merely added positions by 0.33% while reduced exposure in future index short by 5.87%.

Nifty Outlook

The disinclination of Nifty to make much headway in the last few days had prompted short build up in the OTMs like 9500 and 10300, but on Friday, the bearish bias was seen expanding, with ATMs and near ITMs beginning to see longs unwound. But this negativity was not shared by Put traders though, with near OTMs through 9000-8500 seeing long unwinding and far OTMs like 8200,8100,7000 seeing short build up. So overall, a directional outlook has not emerged as yet, with 9000 & 10000 seen as the boundaries, before strength emerges.

Source : Equity Bulls

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