A total of four stocks have been put under the ban for trade on Wednesday, May 10, 2023 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The securities have been put on ban under the F&O segment as they have crossed 95 percent of the market-wide position limit (MWPL), according to the NSE. However, the stocks will be available for trading in the cash market.

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Bharat Heavy Electricals Limited (BHEL), Canara Bank, Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) and Manappuram Finance are the four stocks that are a part of the F&O ban list by the stock exchange for today. The NSE updates the list of securities in F&O ban for trade everyday.

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BHEL

: The MWPL for BHEL stood at 87.9 percent with OI (Open Interest) was at 101.8 million, according to data from Trendlyne. The BHEL stock was trading 0.063 percent lower at Rs 79.35 per share in Wednesday's trade.

Canara Bank: The MWPL for the private sector lender stood at 89.2 percent with OI was at 47.2 million. Shares of Canara Bank Ltd were trading 1.34 percent lower at Rs 298.80 apiece in today's trade.

GNFC: The MWPL for GNFC stood at 89.4 percent with OI was at 7.8 million. Shares of GNFC were trading 0.73 percent higher at Rs 596.55 apiece in today's trade.

Manappuram Finance: The MWPL for Manappuram Finance stood at 84.7 percent with OI was at 39 million. Shares of Manappuram Finance Ltd were trading 0.26 percent higher at Rs 116.10 apiece in today's trade.

The derivative contracts in the mentioned securities have crossed 95 percent of the market-wide position limit and are therefore have been currently put in the ban period by the stock exchange, said NSE.

“It is hereby informed that all clients/members shall trade in the derivative contracts of said securities only to decrease their positions through offsetting positions," the stock exchange said. "Any increase in open positions shall attract appropriate penal and disciplinary action," NSE added.

No fresh positions are allowed for any of the F&O contracts in that particular stock when it is under the F&O ban period. The MWPL is set by the stock exchanges, which is the maximum number of contracts that can be open at any time (Open Interest), therefore, the F&O contracts of that stock enter a ban period if the open interest crosses 95 percent of the MWPL.

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Meanwhile, domestic equity benchmark indices Sensex and Nifty erased opening gains to trade lower ahead of key US inflation data and earnings from index majors L&T and Dr Reddy's Labs. In the sectoral space, barring Nifty FMCG and Nifty Media, all indices were trading with cuts.

"Since bulls are in control of the market now, it is possible that this rally can take the market towards the Nifty all-time- high of 18,887, which is only 3 percent away. The main driving force of this rally is the sustained FII buying for the last nine trading days with cumulative buying of Rs 15767 crores. This sudden change in FII strategy has also triggered some short covering, which has assisted the bulls," said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"The market will be closely watching the Karnataka exit poll results this evening. A congress victory in the elections is unlikely to impact the market much, but an unexpected setback to the BJP may slightly impact near-term sentiments. More important from the market perspective will be the CPI data from the US expected today. If the disinflation trend continues that would be a shot in the arm for equity markets globally," Vijayakumar added.