F&O Ban: GNFC, Indiabulls Housing Finance under ban for trade on Thursday

Two stocks are under a ban for trade on Thursday, March 16, 2023, according to the data available on NSE. The securities which are under the ban are Gujarat Narmada Valley Fertilizers and Chemicals and Indiabulls Housing Finance. They were under the F&O ban on Wednesday as well.

Any stock's Future & Options contracts 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 the data available on Trendlyne, the MWPL of GNFC stood at 84.6% as on 15 March with the open interest at 7.9 million. The OI day change was at negative 0.9.

The MWPL of Indiabulls Housing stood at 97.2% on Thursday with OI reported at 47.7 million, according to Trendlyne. It was down 1.2% from the previous session.

That said, in the cash market, the stocks will be available for purchase.

On Wednesday, GNFC shares ended at Rs 529.30 on the NSE and were up by Rs 4.10 or 0.77% despite a lacklustre trade in the broader markets. Meanwhile, the benchmark indices BSE Sensex and NSE Nifty have been in a falling trend over the past five trading sessions on the back of twin banking disasters in the US.

As for Indiabulls Housing Finance, the stock ended at Rs 100.90 and was down by Rs 1.10 or 1.08% from Tuesday's closing price.

Market View
Nifty witnessed a gap-up opening on Wednesday but could not sustain at higher levels and ended the session down 70 points for the 5th successive day.

"The key hourly moving averages placed at 17,200 acted as a stiff resistance. Despite the strong opening, Nifty was not even able to surpass the previous trading session high and as the day progressed selling pressure intensified resulting in the fifth consecutive negative close for the day. It has achieved our short-term target of 16,950 and hence we revise it downwards to 16,750 which is the previous swing low. On the hourly charts, we can observe a positive divergence developing however it needs to be confirmed by a daily positive close and hence we shall assign more weightage to the price action as of now and continue to maintain our negative outlook on the index," Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said.

"The decisive breach of the 17,000 mark undoubtedly dented the sentiments, but as we allude to our previous commentary, the 16,900-17,000 odd zone is expected to cushion the fall. And we remain hopeful till the market withholds the range. On the higher end, 17,200-17,250 is expected to act as an immediate hurdle, followed by the sturdy wall of 200 SMA, placed around 17,400-17,450 in a comparable period," Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One Ltd.

His advice to investors is to keep a close tab on the mentioned levels and avoid aggressive bets for the time being. Remaining abreast with global developments is also warranted, according to him.

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