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Nifty index futures closed 0.33% higher at 11064.65 on Friday. Open interest rose by 7.84 lakh contracts indicating build up of longs. Cost of carry once again rose back to a premium and closed at 16.85 from a discount of 0.7. PCR OI rose once again and closed at 1.21 from 1.1 on the backdrop of heavy decline in Nifty Call open interest. India VIX closed lower at 16.65 from 17.78.
FIIs added longs in index futures; Overall activity still sluggish
FII activity witnessed a turnaround in their approach in index futures. They added longs by 13469 contracts and the net long exposure in index futures revived marginally from the multi series low of 25% to 28%. In index options, however, they added more synthetic shorts than longs where the open interest rose by 15993 contracts. In stock futures also the activity was focussed in the addition of shorts and reduction of longs. However, the low volume of activity ensured that long exposure in stock futures remained high at 60%
Indecision prevails on a short term perspective
Indecision still prevails as maximum Put and Call open interest is seen at 11000 strike. However, second highest build up seen at 10700 Put and 11500 Call strikes suggests that 10700-11500 will be the near term extremities of the index. Such wide positioning of open interest also hints at higher potential for volatility.
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