The National Stock Exchange (NSE) has prohibited trading in Indiabulls Housing Finance on Wednesday, July 5, 2023 in the futures and options (F&O) segment. According to the NSE, the security has been banned from the F&O segment after exceeding the market-wide position limit (MWPL) by 95%. The shares will nonetheless be accessible for trading on the cash market. The list of securities that are prohibited from trading by F&O is updated daily by the NSE. The stock exchange has presently placed the derivative contract in the aforementioned securities under the ban period since it exceeded 95% of the market-wide position limit, according to NSE.
“Please be advised that all customers and members are required to trade in the aforementioned security’s derivative contracts exclusively in an effort to reduce their positions through offsetting positions. According to NSE, any increase in open posts will result in appropriate sanctions and disciplinary action.
Any F&O contracts for the specific stock that are placed under the F&O ban period by the stock exchanges are not permitted to have new positions opened. The leading indexes, the Sensex and the Nifty, closed at record highs for the fourth session in a row on July 4, continuing the Indian market’s record-setting streak.
With a strong infusion of foreign money and a promising macroeconomic outlook, the Indian market has been on the rise. On the medium and long-term prospects of the Indian market, analysts and brokerage houses continue to be optimistic. For the Sensex, it was the fifth straight session of advances, while for the Nifty, it was the sixth session in a row.
The BSE Midcap and Smallcap indexes also reached new record highs throughout the session, rising to 28,951.49 and 32,990, respectively. While the BSE Smallcap index ended the day with a tiny gain of 0.05% at 32,802.63, the BSE Midcap index ended the day 0.222% weaker at 28,798.91.
The market’s momentum has changed away from this year’s leaders and towards the laggards, such as IT, commodities, and PSUBs. In anticipation of the impending Q1 reports, the market is taking a break. Following a mixed set of sales statistics for the month of June, the car industry encountered selling pressure, while the pharmaceutical and banking industries showed favourable trends, according to Vinod Nair, Head of Research at Geojit Financial Services.
Where is the Nifty going?
One should continue to purchase on dips in the nifty and stay away from any short positions until it breaks 19,200. The nifty index’s immediate support level is at 19,300, where the most open interest in put options is visible. On the other end of the spectrum, nifty may encounter resistance at 19,500, where the most open interest in calls is visible. If nifty breaks 19,500 levels, we may witness further upward movement towards 19,700, according to Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
