Can kindly explain why yes bank was put on F and O ban ahead of Friday announcement? What is MWPL?
Explaining the process behind the F&O ban, technical analyst Milan Vaishnav said that this happens due to the security reaching the MWPL — Market Wide Position Limit. “Any trade that can now be placed in FO can be done only to square off the existing position. If any trade is done to take a fresh position, it would result in a penalty,” Milan Vaishnav, CMT, MSTA told Financial Express Online. According to Vaishnav, if a higher percentage of volumes correspond to delivery volumes, it implies that the market consensus is towards an upward directional bias. “So, if the up move in the price is also accompanied by higher delivery volumes, the stock may move higher once it is out of FO ban,” he explained.