The future & options contracts of any stock enter the ban period when the open interest (OI) on it crosses 95% of the market-wide positions limits or MWPL. The ban on it is reversed only if the open interest falls below 80%.
Traders who trade in indices do not encounter a situation of security ban.
The MWPL for Indiabulls Housing stood at 97.9% on Monday with OI reported by Trendlyne at 54.6 million. It was up 5.9% from the previous session.
IB Housing Finance shares settled flat at Rs 114.15 on the NSE.
According to data available on Trendlyne, the MWPL for Manappuram Finance stood at 104.1% with OI reported by Trendlyne at 65.1 million. It was up 8.8% from the previous session.
Manappuram shares closed 1.82% lower at Rs 110.30 on Monday.
Meanwhile, the MWPL for The India Cements stood at 100.2% with OI reported by Trendlyne at 21.5 million. It was up 12.2% from the previous session.
India Cements shares rose 2.16% to end at Rs 217.55.
Indian benchmark indices S&P BSE Sensex and Nifty50 ended Monday in the green, building up on their Friday gains. While the Sensex closed at 62,787.47, up by 240.36 points or 0.38%, the broader Nifty50 settled at 18,593.85, up by 59.75 points or 0.32%. Nifty Bank finished at 44,101.65, higher by 163.80 points or 0.37%.
“The bulls appear to be fatigued when it comes to the key index, as despite some positive triggers in the last few sessions, there is a lack of conviction in the movement. On the daily chart, prices seem to have entered a consolidation phase, with immediate support around 18,500-18,450, while immediate resistance is observed at 18650-18700,” Rajesh Bhosale, Technical Analyst at Angel One said.
A sustained close above this crucial resistance level is needed to initiate a momentum move, and it appears that the markets are awaiting a trigger for this to happen, he said.
Perhaps it will come after the RBI policy announcement or through a significant contribution from one of the major heavyweight stocks, he said further.
Until then, the traders are advised to maintain a positive bias and consider buying opportunities during dips toward the aforementioned support levels, Bhosale recommended.
“We have been advocating for the Nifty Midcap 100 for the past few weeks, and its winning streak has now extended to the eleventh consecutive session. We remain optimistic about this segment and advise traders to continue focusing on thematic approaches that offer the potential for outperformance,” this analyst said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)