Any stock’s Future & Options contracts enter the ban period when its open interest (OI) 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 an index do not encounter a situation of security ban.
According to data available on Trendlyne, the MWPL of GNFC stood at 82.5% as on 16 March with the open interest at 7.7 million. The OI day change was at negative 2.3%.
The MWPL of Indiabulls Housing stood at 93.9% on Thursday with OI reported by Trendlyne at 46.5 million. It was down 2.5% from the previous session.
Meanwhile, in the cash market, the stocks will be available for purchase.
On Thursday, GNFC shares ended at Rs 523.60 on the NSE, down Rs 4.85 or 0.92%. Indiabulls Housing Finance shares ended at Rs 100.35, down Rs 0.35 or 0.35% from Wednesday’s closing price. Both the benchmark indices — BSE Sensex and NSE Nifty — managed to break their 5-day falling trend on the back of a series of banking disasters in the US and Europe.
“The Nifty witnessed a sharp recovery and closed in the positive after falling for five consecutive days. It closed with marginal gains of 13 points, and more importantly it has taken support at the lower end of the downward sloping channel and bounced back with a long lower shadow indicating buying interest at lower levels,” Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said.
The positive divergence and positive crossover on the hourly charts suggest that the bounce can continue over the next few trading sessions, Gedia added.
“Considering that the Nifty has corrected 1000 points in the last six trading sessions it is appearing oversold and hence a relief rally appears highly probable over the next few trading sessions. On the upside, the immediate hurdle stands at the 17170 – 17200 zone where resistance in the form of the hourly upper Bollinger band and the 40-hour exponential moving average is placed,” the Sharekhan analyst said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)