PB Fintech, Voltas: 5 most actively traded stocks on Day1 of Feb F&O series

Derivative market update for February 1: Data shows that FIIs hold 8 short positions in index futures for every long trade; retail, DIIs, proprietary traders hold bullish bets.

Derivative markets started the February series on a positive note, with the NSE Nifty February futures surging 1.1 per cent to 23,620 levels. The premium in the futures contract, however, decreased from 168 points on Thursday to 112 points yesterday.  The February series kicked off exceptionally with a series of noteworthy developments in the benchmark index. The Nifty 50 exhibited remarkable strength as it progressively broke through critical resistance zones, reflecting a vibrant market sentiment, said Osho Krishnan, Sr. Analyst, Technical & Derivatives at Angel One.  Meanwhile, in trades on Friday, the Nifty futures open interest (OI) rose by 2.8. Similarly, the second most actively traded index futures on the NSE - the Bank Nifty February futures gained 0.6 per cent, and settled with a premium of 275 points alongside a 5.3 per cent increase in OI.  "As we approach the upcoming Budget session and consider the anticipated trade tariffs from the US government, it’s important to acknowledge the current market uncertainty. We expect to gain clearer insights once these events unfold, likely by next week", said Osho Krishnan in a note.    Technically, Osho expects the Nifty to seek support at the 20-DEMA around 23,400 - 23,350 levels, but cautions against possible wild swings given the Budget Day action. Additionally, strong foundational support appears to be positioned around the 23,100 - 23,000 zones, followed by the lower band of the 'Falling Wedge' around 22,800.  The derivative data from NSE shows that Foreign Institutional Investors (FIIs) continue to remain fairly short in index futures, with the long-short ratio at 0.13. This ratio implies that FIIs hold 8 short positions in index futures for every long bet.  At the same, Domestic Institutional Investors (DIIs) long-short ratio in index futures stands at 1.27, proprietary traders at 1.61 and that of retail investors at 2.45 - indicating a bullish stance by all three participants.    Cues from Nifty options data  The Nifty options data reflects a mildly bearish undertone, with call writers maintaining a slight upper hand over put writers, hinting at cautious sentiment near higher levels, said Dhupesh Dhameja, Derivatives Analyst at  SAMCO Securities.  The analyst in a note said, the 24,000-call strike has seen open interest surge to 77.38 lakh contracts, establishing it as a key resistance zone. Meanwhile, substantial put writing at the 23,000 strike, with 60.63 lakh contracts, confirms it as a strong support area.  Notably, increasing put additions between 23,000 to 23,500 further solidify the base, while call unwinding at higher strikes suggests a shift in bullish positioning. The Put-Call Ratio (PCR) climbed to 1.01 from 0.88, indicating improving bullish sentiment. Furthermore, the 'max pain' level at 23,500 suggests limited downside potential, though volatility remains a factor to watch.    Most actively traded stocks on Day 1 of the Feb series  A total of 5 out of the 223 stocks traded in the futures & options segment saw a change of more than 10 per cent in OI on Day 1 of the February series on Friday.  Data shows that the OI in Kalyan Jewellers dropped by more than 16 per cent, as the stock soared 12.6 per cent - thus implying possible short-covering at the counter. Similarly, the OI in PB Fintech (PolicyBazaar) and Max Healthcare declined over 10 per cent each, while the stocks rose 4 per cent and 1.4 per cent, respectively.  That apart, Jindal Stainless and Voltas saw over 10 per cent increase in OI, while the former stock gained 0.5 per cent, and the latter dipped 0.8 per cent.