Market Wide Position Limit - NSE MWPL Live | Research 360 by Motilal Oswal

MWPL

Symbol Price Chg Cur.MWPL Pre.MWPL
AARTIIND 706.10 0.61% 53.02% 54.28%
ABB 8,209.25 -2.94% 30.52% 25.14%
ABBOTINDIA 27,472.70 -1.29% 21.01% 20.69%
ACC 2,686.15 0.82% 59.60% 61.92%
ADANIENT 3,065.45 -0.42% 53.64% 53.21%
ADANIPORTS 1,486.70 0.19% 36.49% 36.52%
AMBUJACEM 676.50 -0.39% 38.75% 39.05%
APOLLOHOSP 6,353.90 -0.55% 17.99% 18.19%
APOLLOTYRE 518.80 -1.44% 49.94% 48.76%
ASHOKLEY 224.26 -1.18% 74.24% 72.47%
ASIANPAINT 2,999.15 -0.76% 25.01% 23.16%
ASTRAL 2,302.35 -1.54% 24.48% 23.46%
ATUL 6,955.55 1.80% 40.91% 35.65%
AUROPHARMA 1,326.85 0.68% 35.11% 34.58%
AXISBANK 1,317.30 1.58% 12.61% 11.72%
BAJAJ-AUTO 9,430.75 -0.38% 17.91% 17.84%
BAJAJFINSV 1,597.25 0.59% 17.37% 17.82%
BAJFINANCE 7,004.30 0.78% 35.43% 35.91%
BALKRISIND 3,122.90 -0.86% 20.72% 20.25%
BALRAMCHIN 440.35 -1.06% 80.82% 87.23%
BANKBARODA 250.60 -2.38% 70.14% 67.17%
BATAINDIA 1,516.10 -1.20% 65.97% 64.58%
BEL 333.10 -0.72% 37.57% 35.95%
BERGEPAINT 526.00 0.50% 50.66% 52.62%
BHARATFORG 1,618.95 -1.33% 29.76% 28.57%
BHARTIARTL 1,433.25 -0.33% 15.40% 15.50%
BHEL 325.90 -2.04% 69.28% 65.97%
BIOCON 350.75 -1.07% 82.57% 81.03%
BOSCHLTD 35,139.05 -1.33% 22.52% 21.77%
BPCL 304.55 -0.67% 31.72% 31.38%
BRITANNIA 5,787.05 0.45% 18.35% 18.33%
ZYDUSLIFE 1,175.15 1.01% 45.21% 45.14%
CANBK 112.72 -1.25% 73.25% 70.67%
CANFINHOME 868.25 -1.14% 73.41% 74.29%
CHAMBLFERT 504.95 1.72% 86.29% 90.03%
CHOLAFIN 1,380.70 -1.72% 16.50% 15.39%
CIPLA 1,512.05 0.40% 17.87% 18.47%
COALINDIA 496.20 -0.77% 27.04% 25.10%
COLPAL 3,034.80 0.93% 15.88% 15.03%
CONCOR 1,057.45 -0.15% 60.11% 56.83%
COROMANDEL 1,602.00 -0.07% 30.75% 30.77%
CUB 159.99 -1.47% 38.32% 36.63%
CUMMINSIND 3,954.05 -1.06% 23.79% 22.85%
DABUR 630.00 0.10% 27.15% 27.38%
DEEPAKNTR 2,774.60 0.44% 41.61% 43.86%
DIVISLAB 4,539.30 -0.94% 21.71% 21.34%
DLF 821.70 -1.23% 55.07% 54.53%
DRREDDY 6,719.45 1.89% 22.96% 22.15%
EICHERMOT 4,860.70 0.66% 19.06% 19.51%
ESCORTS 3,915.60 -1.82% 43.62% 41.64%
EXIDEIND 559.05 -0.78% 77.00% 75.93%
FEDERALBNK 195.48 1.46% 36.94% 37.70%
GAIL 228.71 -0.30% 34.73% 34.85%
GLENMARK 1,381.50 -0.21% 29.95% 32.39%
GMRINFRA 97.74 -0.99% 104.06% 93.77%
GNFC 685.95 -0.01% 86.70% 89.83%
GODREJCP 1,443.90 0.21% 12.90% 13.07%
GODREJPROP 3,262.00 -0.97% 26.26% 25.96%
GRANULES 514.35 -0.07% 76.37% 75.22%
GRASIM 2,843.75 1.50% 22.23% 22.25%
GUJGASLTD 634.70 -1.61% 39.26% 38.16%
HAVELLS 1,908.45 -0.60% 25.22% 24.90%
HCLTECH 1,560.20 3.19% 17.50% 14.11%
HDFCBANK 1,622.70 0.05% 24.22% 24.28%
HEROMOTOCO 5,546.90 0.37% 26.30% 26.24%
HINDALCO 692.05 -0.61% 25.80% 24.89%
HINDCOPPER 330.25 -1.06% 93.31% 91.52%
HINDPETRO 342.15 -2.26% 42.95% 41.95%
HINDUNILVR 2,622.25 0.51% 15.96% 16.00%
ICICIBANK 1,232.90 -0.45% 11.21% 11.35%
IDEA 16.09 -2.84% 90.81% 86.94%
IDFC 117.65 0.25% 48.63% 48.26%
IGL 525.50 -1.00% 37.49% 37.84%
INDHOTEL 594.05 -1.44% 23.61% 22.62%
INDIACEM 297.85 -2.31% 88.43% 92.34%
INDUSINDBK 1,434.55 0.34% 44.22% 44.81%
INDUSTOWER 392.00 -0.57% 86.65% 88.41%
INFY 1,711.75 3.57% 14.07% 13.32%
IOC 167.04 -4.24% 25.48% 18.68%
IPCALAB 1,223.55 -0.02% 17.56% 18.00%
ITC 459.05 0.09% 10.05% 9.83%
JINDALSTEL 1,013.90 -0.06% 32.61% 31.83%
JKCEMENT 4,339.40 -0.05% 14.06% 14.27%
JSWSTEEL 934.40 1.02% 11.89% 12.04%
JUBLFOOD 582.05 0.04% 45.12% 43.78%
KOTAKBANK 1,832.85 -0.63% 18.90% 19.65%
BSOFT 732.35 5.22% 75.86% 82.55%
LTF 182.26 1.68% 76.43% 76.01%
LICHSGFIN 779.70 -1.40% 75.36% 76.08%
LT 3,649.35 0.78% 10.15% 10.45%
LUPIN 1,797.75 -1.08% 42.77% 43.24%
M&M 2,703.95 0.22% 22.13% 23.09%
M&MFIN 298.20 -0.98% 60.94% 59.73%
MANAPPURAM 224.23 5.39% 79.34% 70.42%
MARICO 650.10 0.82% 22.58% 22.97%
MARUTI 12,562.50 -1.20% 40.31% 39.76%
MFSL 1,018.25 -1.40% 11.69% 12.02%
UNITDSPR 1,289.65 0.40% 27.42% 27.52%
MCX 3,771.35 0.32% 57.53% 57.91%
MOTHERSON 196.82 -0.85% 41.35% 41.44%
MPHASIS 2,690.70 5.09% 47.22% 45.01%
MRF 129,690.90 -0.70% 17.47% 16.50%
MUTHOOTFIN 1,846.75 0.81% 35.47% 32.50%
NATIONALUM 197.56 -0.67% 61.52% 61.36%
NAUKRI 6,861.50 3.74% 13.76% 14.08%
NAVINFLUOR 3,657.20 0.31% 38.85% 39.75%
NESTLEIND 2,609.00 0.61% 12.45% 11.62%
COFORGE 5,977.65 7.44% 32.10% 32.13%
NMDC 246.26 0.03% 88.64% 88.32%
NTPC 377.15 0.01% 18.54% 18.30%
OBEROIRLTY 1,697.70 -0.81% 54.71% 54.29%
OFSS 10,556.85 3.99% 68.18% 70.52%
ONGC 307.10 0.77% 19.79% 20.09%
PAGEIND 39,754.60 0.95% 17.79% 17.58%
PEL 938.00 0.39% 80.91% 84.74%
PERSISTENT 4,808.50 4.12% 24.03% 22.56%
PETRONET 339.05 -0.76% 37.19% 39.53%
PFC 555.15 -2.71% 38.31% 36.59%
ABFRL 323.20 -0.06% 81.09% 83.60%
PIDILITIND 3,147.65 -0.44% 12.41% 12.53%
PIIND 3,901.30 1.01% 18.76% 19.16%
PNB 117.74 -1.39% 83.98% 80.06%
POWERGRID 343.10 0.09% 13.53% 13.64%
PVRINOX 1,476.95 1.15% 81.69% 79.86%
RAMCOCEM 793.90 -0.36% 84.20% 82.73%
RECLTD 637.35 -1.31% 50.40% 50.80%
RELIANCE 3,193.45 1.02% 10.62% 10.77%
SAIL 150.42 -0.94% 89.23% 87.95%
SBIN 859.70 0.35% 24.06% 24.53%
SHREECEM 27,665.50 -0.39% 12.72% 12.80%
SIEMENS 7,613.55 -2.09% 19.28% 17.65%
SRF 2,390.25 -0.07% 31.14% 31.44%
SHRIRAMFIN 2,794.40 2.02% 20.71% 19.90%
VEDL 449.70 0.45% 81.01% 79.28%
SUNPHARMA 1,577.30 -0.28% 12.51% 12.43%
SUNTV 808.30 -0.43% 73.90% 75.93%
TATACHEM 1,065.70 0.63% 92.32% 93.44%
TATACOMM 1,859.50 -0.51% 46.48% 46.67%
TATACONSUM 1,152.25 1.84% 16.65% 17.30%
TATAMOTORS 1,016.75 -0.40% 34.50% 34.84%
TATAPOWER 434.05 -1.44% 52.47% 49.84%
TATASTEEL 168.69 -0.14% 29.48% 28.69%
TCS 4,183.95 6.63% 22.04% 21.71%
TECHM 1,505.05 3.04% 20.04% 20.24%
TITAN 3,229.85 -0.58% 26.29% 26.08%
TORNTPHARM 2,948.45 -0.34% 8.70% 8.83%
TRENT 5,651.25 0.28% 11.27% 11.18%
TVSMOTOR 2,439.45 -1.46% 20.56% 20.13%
UBL 2,065.10 -0.69% 28.87% 29.26%
ULTRACEMCO 11,602.30 0.41% 21.67% 21.75%
UPL 563.65 1.07% 60.05% 59.01%
VOLTAS 1,520.00 0.48% 29.14% 29.57%
WIPRO 560.15 4.88% 39.95% 37.02%
SYNGENE 742.20 0.85% 35.76% 33.85%
INDIGO 4,331.65 0.26% 38.18% 37.28%
IDFCFIRSTB 78.27 0.06% 91.19% 89.90%
LALPATHLAB 2,950.85 0.15% 28.20% 28.16%
ALKEM 5,198.75 -0.01% 17.57% 17.55%
CROMPTON 431.75 1.97% 26.44% 26.46%
MGL 1,696.50 -0.42% 56.16% 57.94%
LTIM 5,572.65 3.05% 29.00% 28.14%
RBLBANK 246.05 0.26% 90.91% 96.20%
LTTS 5,056.30 2.30% 45.96% 40.03%
ICICIPRULI 651.15 -0.34% 26.52% 26.77%
LAURUSLABS 463.40 -1.73% 42.17% 41.24%
AUBANK 643.80 1.64% 38.00% 39.49%
DIXON 12,410.00 -1.61% 54.01% 52.08%
SBILIFE 1,562.85 0.26% 13.33% 13.50%
ICICIGI 1,865.30 -0.47% 12.38% 12.40%
ABCAPITAL 224.75 -0.70% 78.96% 77.90%
IEX 177.13 0.03% 82.10% 84.22%
HDFCLIFE 635.55 0.20% 25.86% 25.76%
BANDHANBNK 192.60 -2.09% 80.34% 82.05%
HAL 5,489.20 -1.05% 77.54% 74.04%
HDFCAMC 4,168.95 -0.30% 19.82% 19.01%
DALBHARAT 1,933.60 3.64% 35.52% 35.05%
METROPOLIS 2,053.55 -0.23% 65.59% 66.46%
POLYCAB 6,581.00 -0.57% 75.72% 77.02%
INDIAMART 2,812.00 1.84% 48.45% 38.44%
IRCTC 1,043.05 1.33% 81.46% 82.38%
SBICARD 738.65 -0.34% 71.59% 70.20%

What is MWPL?

Market Wide Position Limit (MWPL) is a regulatory mechanism implemented by stock exchanges to monitor and regulate the overall open position of market participants in the derivatives segment. It is a predefined threshold set by the exchange to ensure orderly trading and mitigate risks associated with excessive speculation and market manipulation. MWPL in NSE or BSE acts as a safeguard against excessive volatility and systemic risk by imposing limits on the total open positions that market participants can hold in derivative contracts.

Objective:

The primary objective of MWPL is to maintain market integrity and stability by preventing excessive speculation and unwarranted risks in the derivatives market. By imposing limits on open positions, MWPL aims to ensure that trading activity remains within manageable levels and does not pose systemic risks to the financial system.

Applicability:

MWPL applies to all market participants, including institutional investors, proprietary trading firms, and retail traders, who trade in derivative contracts such as futures and options. It sets a cap on the total open positions that can be held by market participants across all derivative contracts traded on the exchange.

Calculation:

MWPL limits are calculated based on various factors, including the overall market capitalisation, liquidity, and volatility of the underlying securities. Exchanges use sophisticated risk management models and algorithms to determine the MWPL levels for different securities and derivative contracts.

Monitoring and Enforcement:

Stock exchanges monitor the open positions of market participants in real-time and enforce MWPL limits through automated surveillance systems. If a market participant exceeds the prescribed MWPL limit, the exchange may impose penalties, restrict further trading activity, or take other corrective measures to ensure compliance with regulatory requirements. Impact on Trading: MWPL limits can impact trading activity by constraining the ability of market participants to take large speculative positions in derivative contracts. While MWPL aims to promote market stability, it may also limit the flexibility of traders and investors to execute certain trading strategies or hedge their positions effectively.

What is the MWPL strategy?

The MWPL strategy involves the implementation of predefined limits on the total open positions that market participants can maintain in derivative contracts. This strategy aims to regulate trading activity and prevent the accumulation of excessive speculative positions that could disrupt market equilibrium. By imposing MWPL limits, exchanges seek to promote market stability, enhance investor confidence, and mitigate the potential for market manipulation and excessive volatility.

For traders, the MWPL strategy involves actively keeping a track of all such stocks to comply with exchange rules, mitigate risk, and make informed trades, fostering market stability and integrity. Through online trading platforms like Motilal Oswal Share Market app or web portal, you gain access to MWPL percentages for each F&O stock. By comparing these percentages between consecutive trading days, you can observe changes in position limits and gauge their impact on market dynamics. This practice safeguards against manipulative tactics, ensuring fair and transparent trading for all participants.

How is MWPL calculated?

MWPL limits are calculated using a combination of factors such as overall market capitalisation, liquidity, and volatility of the underlying securities. The exchange establishes this limit, defining the highest allowed Open Interest (OI) for a specific underlying stock, typically measured in shares. It's determined by the lesser of two factors: either 30 times the average daily trading volume in the preceding month in the cash segment, or 20% of the non-promoter-held shares, equivalent to the free float of the company, in terms of share count.

Exchanges employ sophisticated risk management models and algorithms to determine MWPL levels for different securities and derivative contracts. These calculations take into account market dynamics and regulatory requirements to ensure that MWPL limits are set at levels conducive to maintaining orderly trading and market stability.

Let us see this with an example. Let us assume a company has a total spread of 10,000 shares. Out of this, 40% (4,000 shares) is with non-promoters; in other words, as free float. Now, as per the methodology explained earlier, 20% of these shares, i.e., 800 shares (4,000 x 0.20) is the Market Wide Position Limit for the company.

Market Wide Position Limit (MWPL) FAQ's

The 95 market-wide position limit (MWPL) is a regulatory measure that restricts the total open positions a trader or entity can hold in the market. It's set at 95% of the total open interest in the market to prevent excessive speculation and manipulation.

Total Open Interest represents the cumulative number of unfulfilled derivative contracts, like options or futures, that are awaiting settlement. It represents the total number of contracts that are held by market participants at any given point in time. Unlike total trading volume, it monitors all active positions within a specific contract, offering insight into market sentiment and potential liquidity.

MWPL in NSE is typically expressed as a percentage of the total market open interest. This percentage indicates how close the market is to reaching its limit and helps ensure market stability and fair trading practices.

When the open interest of a stock's F&O contracts surpasses 95% of the MWPL, the contracts are placed under a ban period. This ban is lifted only when the open interest drops below 80%. During the ban, no new positions can be initiated in any stock's F&O contracts, although closing existing positions is permitted.

MWPL stands for Market Wide Position Limit. It's a crucial tool used by regulators and stock exchanges to maintain market integrity by preventing any single entity from dominating or manipulating the market through excessively large positions.

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