5100 and 5,200 are important level on call side of market

CNBC-TV18's, Research Analyst, Varinder Bansal : The turnover is low on the F&O side and that has been the case if you just see in the last three-four days but one important thing with which we are picking up is that people are starting to book profit in the options side. Remember 5,100 and 5,200 is the important level on the call side of the market and we are constantly seeing that people are hedging their positions by buying 5,100-5,200 call. Also 5,000-5,100 remains important level where we are seeing that people are booking profit on the put side. Remember on Friday the 5,000 level saw around 6 lakh shares being added on the put side and today that is one level which is seeing shedding of open interest. So people are booking profit. The discount in Nifty futures is widening and of course not on a huge basis but yes, it has moved from 5-10 points. There are people who are constantly shorting the Nifty futures and for hedging their buying at the call option, which I earlier, mentioned.

But of course there are stocks specific actions, which we can see and Cairn India remains on the top of the list with which the stock has seen an addition of long positions. This buying, which is actually seen in the cash market because of the cost of carry, which you can see, is the negative territory of around Rs 4. There is cash buying since happening from the level of around Rs 260-270 on Cairn India. Suzlon is another stock where we are seeing some kind of buying happening in the stock slowly and mildly some buying is emerging in the stock. It has seen addition of nearly 15 lakh shares in the open interest. Short covering is prominently seen in Sterlite Industries and we have seen a cut of around 63,000 shares which is not much on the base of around 26 lakh but yes, we have seen a turn of around Rs 100 crore so Sterlite Industries.

Unwinding seen in most of the momentum stock where there is GMR Infrastructure which has seen a cut of nearly 5.5 lakh shares or whether it is Chambal Fertilisers which was the most active stock on Friday. Chambal Fertlisers has also seen a cut of nearly 13.5 lakh shares. Ispat Industries, Nagarjuna Fertilisers, IFCI all are the stocks, which have seen huge unwinding pressure in today’s trade. You can see Nagarjuna Fertilisers a cut of nearly 7.5 lakh shares and the stock is down and also the same on IFCI.