Monday blues have become a pattern now. This week too started with a drop. The current super-sensitive scenario impacted by COVID-19 crisis kept the choppiness coming. However, the sequence of ups and downs left Nifty without any meaningful damage as the loss for the week was just over 2 percent. Bank Nifty, on the other hand, has always been amplifying the moves of Nifty. This week was no different, as the Bank Nifty too after passing through similar choppy path ended up with around 5 percent drop for the week.
On the open interest front, the futures on both the indices reacted opposite to the recent trend. Nifty has been in an unwinding mode ever since the May expiry started. However, this week we did see tiny bit of increment in participation. The change in OI still remained restricted to sub-5 percent every day despite the size of the moves. This along with a couple of unwinding sessions in between Nifty futures ended the week with more or less no change.
Bank Nifty futures, on the other hand, had a better week. At least till mid-week a whopping 16 percent short covering was observed but the late week weakness especially the last session drop raised short interest resulting in 11 percent of covered shorts to reinstate. This left Bank Nifty with around 5 percent covered shorts.