Adani Energy, Jio Fin among 6 stocks with OI build-up ahead of F&O expiry

Adani Energy Solutions, Syngene, Jio Financial, CG Power, Persistent Systems and CAMS are the 6 derivative stocks with up to 14 per cent build-up in open positions 5 days ahead of the monthly expiry.

The Nifty January futures gained 0.3 per cent on Thursday while the open interest (OI) declined by 3.2 per cent. In the last two days, the OI in the January month contract has declined by 6.4 per cent. This is a general trend, wherein traders look to either close or rollover the positions ahead of the monthly expiry, which in this case is on January 30 (Thursday).  Technically, the Nifty is seen hovering below the 10-day EMA, hence bullish momentum remains elusive, said Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities in a note.  However, a solid base near 23,050–23,000, provides immediate support for bullish prospects. A breakout beyond 23,300 could unleash short-covering, propelling the Nifty towards the pivotal 23,500 mark, Dhupesh said.  In Nifty options too, open interest at the 23,250-strike Call soared to 2.21 crore contracts, marking this level as a formidable ceiling. Conversely, the 23,200-strike Put witnessed a significant addition of 4.04 crore contracts, establishing a solid support level. The Put-Call Ratio (PCR) climbed to 1.05, reflecting a cautiously optimistic market sentiment, the note added.  Anand James, Chief Market Strategist at Geojit Financial Services explains that the two days of consecutive upsides on the Nifty failed to gain momentum is suggestive that a range breakout might take longer. So, while we brace for more swings within the 23,000 - 23,400 region, positivity may linger as long as Nifty holds above 23,155.  F&O stocks  Meanwhile, among individual stocks, six out of 223 shares traded in the NSE derivative segment have seen an over 8 per cent rise in open interest just 5 days ahead of the monthly expiry.    Adani Energy Solutions saw over 14 per cent build-up in open positions as the stock ended 0.8 per cent higher on Thursday. Similarly, Persistent Systems, which, soared over 10 per cent yesterday saw the OI rise by 8.5 per cent. Syngene and CAMS too witnessed an increase in price and OI.  Whereas, Jio Financial Services and CG Power registered a dip of 2.5 per cent and 1.7 per cent alongside 10.5 per cent and 8.5 per cent rise in OI.  A total of 9 stocks under placed under F&O ban period for trading today including the likes of - Aditya Birla Fashion Retail, Bandhan Bank, Can Fin Homes, Dixon Technologies, IndiaMart Intermesh, L&T Finance, Manappuram Finance, Mahanagar Gas and PNB.