Nifty futures added 20 lakh shares

CNBC-TV18, Research Analyst, Varinder Bansal :

Most of the volumes coming in from the F&O and that is around 30,000 of the total 40,000 done in trade today. But the most interesting thing if we just see in today’s trade is that the Nifty future discount has been around 40-45 points since morning. The clear-cut direction that we see is that most investors are hedging their positions because there is a lot of buying or open interest build-up in most of the momentum stocks, and there is no strike below 3,700 that got introduced in the market. People are hedging their positions by shorting the Nifty. So that is a clear-cut trend that we see. There is an addition of around 20 lakh shares seen in the Nifty futures.

Stock specific, RNRL remains the most buzzing stock today in terms of open interest build-up. The open interest build-up seen in today’s trade is around 10% and the stock is up nearly 2.5%. Punj Lloyd seems interesting and the stock has come back in today’s trade and we have seen huge buying that has also taken cost of carry into positive territory. The stock has seen open interest build-up of nearly 9% and the stock is up nearly 12%.

JP Associates is again one of the beaten down stocks and it has seen an open interest addition of nearly 2.5%. There was cash buying that prompted the stock to go higher and later on there was short covering in the stock and the open interest is down by nearly 3% and the stock is up nearly 7.5%.

Another candidate on the short covering front is Ranbaxy. The stock is up nearly 3.5% and it has shed nearly 10% shares in open interest. DLF also has been buzzing in the last couple of days. It has added nearly 5 lakh shares in open interest. Most importantly there is huge cash buying happening because of which the cost of carry is negative there. Most people believe that Rs 370-380 could be a base for the stock and that is why there is huge buying in the cash market.