Dear All,
I want to know , why STOCKS FUTURE banned for some days , usually this happens ? Pls help me understand this.
When the open interest crosses 95% of market wide limit the future is banned for making overnight position. However, if you want, you can trade intraday in that particular future.
High open interest means that either the future is overbought or oversold depending upon the trend and you can expect a sharp reversal in trend if the reasons for the trend is completely discounted.
You can refer to the recent price movement in the stock of Bharat Financial Inclusion.