F&O Ban: BHEL, GNFC, Manappuram Finance, Canara Bank under ban for trade on Wednesday

Four stocks - Bharat Heavy Electricals (BHEL), Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), Manappuram Finance and Canara Bank are under the futures & options (F&O) ban for trade on Wednesday. The stocks although will be available for trading in the cash market.

The future & options contracts of any stock enter the ban period when the open interest (OI) on it 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 indices do not encounter a situation of security ban.

According to data available on Trendlyne, the MWPL for BHEL stood at 89.6% on Tuesday with OI at 102.7 million. It was down 8.1% from the previous session. BHEL shares ended at Rs 78.90 on Tuesday, up Rs 2.70 or 3.31% from the previous closing price.

Meanwhile, the MWPL for GNFC stood at 90.2% on Tuesday with OI reported by Trendlyne at 7.9 million. It was down 2.3% from the previous session. GNFC shares settled at Rs 590.50, down Rs 8.70 or 1.45%.

The MWPL for Manappuram stood at 97.2% on Tuesday with OI reported by Trendlyne at 39.1 million. It was down 6.4% from the previous session. Manappuram shares closed Rs 4.55 or 4.10% higher at Rs 115.50.

As for Canara Bank, the MWPL stood at 84.8% on Tuesday with OI reported by Trendlyne at 49.4 million. It was up 22.1% from the previous session. Canara Bank shares ended the day Rs 10.90 or 3.48% higher at Rs 302.30.

Indian markets had a flat ending on Tuesday. While the bias was positive in Nifty50, it was negative in the S&P BSE Sensex. The BSE Sensex closed at 61,761.33, down 2.92 points while the broader Nifty50 was higher by 1.55 points at 18,265.95. Nifty Bank finished at 43,198.15, down by 85.85 points or 0.20%.

"Nifty opened positive but some profit booking at higher levels led to flat closing for the day at 18266 levels. Sectorially it was a mixed bag with buying seen in IT and auto sectors," Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services said.

Global cues were mixed as investors keenly await US inflation data as this will set the tone for FOMC’s next meeting, the Motilal Oswal analyst said.

"Apart from global cues and Q4 earnings, the domestic market will also watch for the Karnataka assembly election that will start on Wednesday. The outcome of the election will be announced on 13th May. While the Nifty is finding some profit booking at higher levels, the overall Market structure remains positive," Khemka said further.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)