After the stocks exceeded the 95 percent market-wide position limit, the National Stock Exchange added Punjab National Bank to its F&O ban list for October 27, the expiry date for monthly futures & options contracts. Moreover, it will be the second stock on Thursday’s F&O ban list.
Notably, on October 25, PNB shares increased by more than 5%, bringing the cumulative gains over the previous seven sessions to more than 20%. However, on Tuesday, the stock’s daily charts showed the construction of a lengthy bullish candlestick pattern with high volume, as well as a lengthy buildup.
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Manufacturer of power equipment – BHEL, has already been added to the F&O blacklist after rising more than 7% to Rs 71.1 on Tuesday. Furthermore, on the daily charts, a sizable bullish candle has developed with high volume. Since the lows in June, it has actually been making higher peaks (highs) and lower lows, rising 69 percent from those lows.
Subsequently, on Tuesday, it topped the long build-up list of stocks. According to the NSE, derivative contracts in securities are placed on the prohibition list if they exceed 95% of the market-wide position limit.
“All clients/members shall trade in the aforementioned security’s derivative contracts exclusively to reduce their positions through offsetting positions,” the contract states. Any increase in open posts will result in the necessary sanctions and discipline, it stated.
However, traders are not permitted to open new positions in equities while the ban is in effect, but they may begin to close out existing positions. The F&O ban rule lessens stock speculating. Technically, a trend suggests a positive undercurrent whenever a stock is undeterred by periods of volatility. Market investors are fervently searching for these equities to gain a trading advantage.
