Jitters on the Street ahead of the general elections have prompted traders to trim their bets on Nifty futures. Open interest or outstanding positions in the Nifty futures stood at 1.6 crore units on Tuesday, the lowest levels in nearly 28 months, as traders are uncertain about the market direction ahead of the polls, especially after the sharp-run up in the indices of late.
"Open interest is light from the last two series for two main reasons. One reason is the upcoming election outcom ..
Traders have been cautious in the last couple of months despite the rebound in the market. Open interest in Nifty futures hit a low of 1.5 crore in the last series. This level was the lowest in over two years, said analysts.
The general elections will be held in seven phases starting Thursday till May 19 and the outcome is expected to be announced on May 23. Expectations of the return of the Bharatiya Janata Party-led coalition and the revival of foreign portfolio inflows have driven up ..
29. The rally gained momentum mainly in March following the release of the opinion polls. The Nifty hit a record high of 11,761 on April 3, after surpassing its previous record high of 11,760.20 that was hit in August last year.
Analysts said the index could hit new highs before the elections.
Amit Gupta, head of derivatives at ICICIdirect, believes the low open interest also means the index is less likely to fall.
“The open interest is near 15 million (1.5 crore), which is half of what it was when the index had hit record high last year. The scenario of index falling is less likely as there is no liquidation fear. There is little leverage in the Nifty,” said Gupta.
"Open interest is light from the last two series for two main reasons. One reason is the upcoming election outcom ..
Traders have been cautious in the last couple of months despite the rebound in the market. Open interest in Nifty futures hit a low of 1.5 crore in the last series. This level was the lowest in over two years, said analysts.
The general elections will be held in seven phases starting Thursday till May 19 and the outcome is expected to be announced on May 23. Expectations of the return of the Bharatiya Janata Party-led coalition and the revival of foreign portfolio inflows have driven up ..
29. The rally gained momentum mainly in March following the release of the opinion polls. The Nifty hit a record high of 11,761 on April 3, after surpassing its previous record high of 11,760.20 that was hit in August last year.
Analysts said the index could hit new highs before the elections.
Amit Gupta, head of derivatives at ICICIdirect, believes the low open interest also means the index is less likely to fall.
“The open interest is near 15 million (1.5 crore), which is half of what it was when the index had hit record high last year. The scenario of index falling is less likely as there is no liquidation fear. There is little leverage in the Nifty,” said Gupta.
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