The Nifty May Futures are currently experiencing a premium of 58 points, reflecting a growing interest among traders. As of now, the total Open Interest for Nifty stands at an impressive Rs 33,563 crore. On Wednesday, the Nifty Index Futures concluded trading at 24,472, marking a modest increase of 0.17%. This uptick is accompanied by the addition of 2,495 contracts, signaling a fresh influx of long positions.

Nifty Index Performance and Open Interest Trends

The benchmark NSE Nifty 50 has shown a 0.69% rise in the May contract since the last expiry. However, it’s worth noting that Open Interest has decreased by 6.48% in Futures, while it has increased by 3.67% across Futures & Options (F&O). Traders are keenly watching the Nifty Options, where call writing is most active at the 24,300 Put and 24,400 Call strike prices.

• Current Trading Range: The Nifty options suggest a trading bracket between 24,300 and 24,500.
• Put-Call Ratio: The Open Interest Put-Call Ratio currently stands at 0.74.

Insights on Nifty Bank Index Futures

Meanwhile, the Nifty Bank Index Futures have also posted gains, rising by 0.66% to reach 54,720, with an addition of 713 contracts indicating new long positions. However, it has experienced a decline of 1.07% since the last expiry. Notably, Open Interest in this sector has dropped by 42% in Futures and 57% across F&O during the same period. The Nifty Bank May Futures are trading at a premium of 110 points, with an Open Interest value of Rs 11,318 crore.

Foreign Institutional Investors’ Activity

In terms of foreign investment, Foreign Institutional Investors (FIIs) have adjusted their positions. They have netted a short position worth Rs 152 crore in Nifty Futures, reducing their total open interest to Rs 17,938 crore from Rs 19,050 crore the previous day, indicating some short covering. Conversely, in Nifty Bank Futures, FIIs have added long positions valued at Rs 464 crore, resulting in an increase in total open interest to Rs 5,472 crore from Rs 5,210 crore.

• FII Long Position Increase: The FII long position ratio has risen to 0.50 from 0.49.
• Long-Short Ratio: The ratio has climbed to 1.01.
• Put-Call Ratio: The open interest put-call ratio stands at 1.01, indicating a balanced sentiment among traders.

Moreover, FIIs have made substantial net purchases worth Rs 2,585.86 crore in the cash market as per provisional data from the exchange.

In conclusion, the current trading landscape for both Nifty and Nifty Bank Futures is characterized by a mix of cautious optimism and strategic positioning by institutional investors. As we move forward, market participants will be closely monitoring these trends for further insights.