The National Stock Exchange (NSE) has updated its Futures and Options (F&O) ban list for Monday, September 23, 2024. This ban affects certain stocks that have reached their trading limits in the derivatives market. A total of 11 stocks have been added to the ban list as they have exceeded 95% of the market-wide position limit (MWPL).
Stocks are placed on the F&O ban list because they have seen heavy trading activity in the futures and options market, surpassing 95% of the market-wide position limit set by the NSE. The goal of the ban is to reduce speculation and control the excessive volatility that often accompanies high trading volumes.
The ban is a way to maintain a stable market and avoid rapid and unpredictable price changes, which can harm both retail and institutional investors.
For September 23, 2024, the following 11 stocks have been placed under the F&O ban:
- Aarti Industries
- Biocon
- Chambal Fertilisers and Chemicals
- GNFC (Gujarat Narmada Valley Fertilizers & Chemicals)
- Granules India
- LIC Housing Finance
- National Aluminium
- Oracle Financial Services Software
- PNB (Punjab National Bank)
- RBL Bank
- SAIL (Steel Authority of India Limited)
These stocks have been restricted from new F&O trades for the day due to the large amount of derivative positions taken by traders in recent sessions.
Investors who are interested in these stocks should keep a close eye on the market. Even though these stocks are banned in the F&O segment, they can still be traded in the cash market. It’s essential to look at the overall performance of these companies, their fundamentals, and market trends before making any investment decisions.
If you are holding F&O positions in any of these stocks, it’s important to manage your risk carefully. Since no new F&O trades can be opened, the focus should be on closing existing positions or adjusting them to avoid potential losses.
The F&O ban list is updated regularly by the NSE based on the market-wide position limit for each stock. It’s important for investors to stay informed about the stocks on the ban list and to understand how this may impact their trading strategies. While the ban only affects F&O trades, the broader market performance of these stocks could also be influenced by the restrictions.
By staying updated on the F&O ban and considering the company’s financial health and market trends, investors can make more informed decisions and manage their investments effectively.
