F&O Ban: Biocon, IB Housing Finance under ban for trade on Tuesday; GNFC exits

Two stocks are under the F&O ban on Tuesday, 21 March 2023, according to the data available on NSE. The securities under the ban are Biocon and Indiabulls Housing Finance. While Indiabulls has been under the ban since the previous week, Biocon is a new entrant. At the same time, Gujarat Narmada Valley Fertilizers and Chemicals has exited the list.

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 the data available on Trendlyne, MWPL of Biocon stood at 99.4% as on 20 March with the open interest at 41.2 million. The OI day change was at negative 1.7%.

The MWPL of Indiabulls Housing stood at 91.4% on Monday with OI reported by Trendlyne at 45.7 million. It was down 1% from the previous session.

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

On Monday, the Biocon shares ended at Rs 201.30 on NSE, down Re 1 or 0.49% in a lacklustre trade in the broader markets. As for Indiabulls Housing Finance, the stock ended at Rs 99, down Rs 2.60 or 2.56% from Monday's closing price.

Nifty witnessed a volatile day of trade on Monday. It opened on a weak note and drifted lower during the first half of the trading session. As the day progressed, it witnessed buying interest emerge from the lower end of the downward sloping channel support zone 16,800 – 16,850 and witnessed a sharp recovery,” Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said.

“It closed on a negative note though well off the intraday lows indicating buying interest at lower levels. On the hourly charts, we can observe that the momentum indicator has triggered a positive crossover which is a buy signal. Thus, we expect the Nifty to continue with the positive momentum which has started during the second half of Monday’s trading session for the next trading session as well,” Gedia said.

“On the upside, the immediate hurdle stands at the 17,145 – 17,200 zone where the previous swing high is placed. The immediate support stands at the lower end of the downward sloping channel 16800 – 16850,” this analyst said.

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