3,900 Put and Call are most active

CNBC-TV18's, Research Analyst, Varinder Bansal : In the last 15-20 minutes one can see that the number of shares which were aiding up has suddenly reduced that means that the shorts, which were there in the market has suddenly come down. The number which is there is around 40 lakh, which was around half an hour earlier suddenly it has come down to 32 lakh that means that people have covered the shorts and the discount, which was around 20-25 points, has come down to around 17-points. But it is also the case if one just sees specific stocks and we can see that today there are lot of straddles are being played that is why the 3,900 Put and Call are most active, 3,900 has added nearly 8 lakh shares and 3,900 Call has added nearly 4 lakh shares.

As I was mentioning there was stocks specific action and a huge covering, which is seen in some of the financial stocks, ICICI Bank is one of them, where we have seen short covering happening in the stock and today the stock is up nearly 10%, there is cut of nearly 2 lakh shares in OI. Also most of the stocks like Yes Bank or Indian Bank stocks where we have seen short covering today.

But on the other side there are banks like Axis Bank, where the stock is up nearly 5% and has seen nearly 1 lakh shares being added. But there are some stocks like HDFC twins, where in both the stocks we have seen long positions being taken but one should also remember that the CoC is in the negative that is why one can see that in both the stocks whether it is HDFC or HDFC bank that there is more cash buying, which is happening then there is a short covering happening in HDFC and HDFC Bank.