F&O Ban: BHEL, GNFC, Manappuram Finance under ban for trade on Tuesday

Three stocks -- Bharat Heavy Electricals (BHEL), Gujarat Narmada Valley Fertilizers and Chemicals and Manappuram Finance are under the futures & options (F&O) ban on Tuesday, data available with NSE showed. The stocks, however, 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 Delta Corp stood at 97.4% on Monday with OI reported by Trendlyne at 111.7 million. It was up 8.5% from the previous session.

BHEL shares ended marginally higher at Rs 81.50 on Monday.

Meanwhile, the MWPL for GNFC stood at 92.6% with OI reported by Trendlyne at 8 million. It was down 2.7% from the previous session. GNFC shares settled Monday's trade at Rs 599.

The MWPL for GNFC stood at 89.6% with OI reported by Trendlyne at 41.7 million. It was down 3.9% from the previous session.

Manappuram shares closed 5.07% higher at Rs 110.90.

Indian markets clocked solid gains on Monday, with the S&P BSE Sensex closing at 61,764, up 709.96 points or 1.16% while the broader market Nifty50 gained 195.40 points or 1.08% to end at 18,264.40. Nifty Bank finished at 43,284, up by 623 points or 1.46%.

"The Nifty opened with a gap up on Monday and continued to inch higher throughout the day to close with gains of 210 points. On the daily charts, we can observe that the Nifty has been witnessing wild swings in the range of 18,000 – 18,350 since the past three trading sessions," Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.

The Nifty has taken out the previous swing high of 18,267 indicating that the upward move is still not complete and the consolidation of the last three trading sessions is part of the larger uptrend, Gedia said.

The Daily and hourly momentum indicator has a positive crossover which is a buy signal, this analyst said adding that there is no concrete evidence that the consolidation is complete.

He changed his outlook on the index sideways from negative.

"The range of consolidation is likely to be 18,000 – 18,300. In terms of price pattern, the index might be forming an expanding triangle considering that the intraday range has been expanding. In terms of levels, 18,130 – 18,110 shall act as a crucial support zone while 18,330 – 18,350 shall act as an immediate hurdle zone for the Nifty," the Sharekhan analyst said.

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