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

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

The future & options (F&O) 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 86.3 % on Wednesday with OI reported by Trendlyne at 99.8 million. It was down 2.9% from the previous session. BHEL shares settled 1.57% higher at Rs 80.65 on Wednesday.

Meanwhile, the MWPL for GNFC stood at 88.3% with OI reported by Trendlyne at 7.7 million. It was down 1.5% from the previous session. GNFC shares closed the day at Rs 598, down 0.97%.

The MWPL for Manappuram stood at 83.9% with OI reported by Trendlyne at 38.5 million. It was down 1.5% from the previous session. Manappuram shares closed at Rs 115, up by 0.69%.

As for Canara Bank, the MWPL stood at 85.8% with OI reported by Trendlyne at 45.6 million. It was down 7.6% from the previous session. Canara Bank shares ended Wednesday's session 1.06% higher at Rs 299.65.

Indian markets settled higher on Wednesday. The S&P BSE Sensex closed at 61,940, up 179 points or 0.29% while the broader Nifty50 rose 49 points or 0.27% to 18,315. Nifty Bank finished at 43,331, up by 133 points or 0.31%.

"Nifty witnessed a volatile day of trade on Wednesday. It opened on a positive note however it was unable to sustain at higher levels and slipped in the red during the first half. It found support at the 20-hour moving average and started to recover during the second half of the trading session and ultimately closed in the green up 49 points," Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said.

On the daily charts, the Nifty is still hovering around the upper boundary (18,350) of the broad trading range (18,000 – 18,350) and both bulls and bears are trying hard to defend their respective boundaries, Gedia said.

On the way down 18,220 – 18,200 is acting as a crucial support zone while 18,330 – 18,350 is acting as an immediate hurdle and the Nifty is witnessing volatile trade within this range, the Sharekhan analyst said further.

"Until we get a decisive close beyond the extremes of this range the sideways price action is likely to continue," he said.

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