Nifty futures discount widen to 40 pts

CNBC-TV18, Research Analyst, Varinder Bansal : The fall is coming on the higher volumes if we just see till now we have done around 40,000 crore overall in the market and around 30,000 crore is coming only from F&O and this is the normal trend which we see around 2/3ish time. So the volumes are higher. One thing that is important is that the discount has widened to around 40 points versus 25 points during the initial part of the day.

We were betting on 4,000-4,100 put which were adding significant open interest in the last three-four days but today we have seen that these people have come back and we have seen shedding of open interest at 4,000-4,100 put. People are writing calls at 4,200-4,300.

Stock specifics technology is one pack, which is very bad. Starting from Infosys the stock is down nearly 4% and has added nearly 6.5 lakh shares in the open interest. This is the highest turnover that we have seen in this stock in a single stock futures around 1,000 crore done on Infosys and we are seeing that this stock was very somber yesterday added nearly 7% in open interest. So there are people who are coming and unwinding their longs created yesterday. 1,740 put is adding nearly 1.5 lakh shares in open interest so that is one level to watch out for 1,740 on the spot market.

Capital goods space is another space, which is very weak today. BHEL is down nearly 3.5% in the spot market and has added nearly two lakh shares in the open interest. The cost of carry is hugely negative around Rs 20 on BHEL.

IFCI the stock was up yesterday; the stock is seeing huge unwinding pressure today. The company will be declaring its results tomorrow, so the stock is down nearly 7% and is shedding of nearly 15 lakh shares in open interest and also the turnover is quite stable around 100 crore.

One stock, which is still hovering in the green territory, thanks to the crude prices, is Cairn India that is up on short covering. People were not expecting USD 5-6/bbl bump up in the crude prices in a single day and so we have seen that the shorts which were created in the last two-three days in Cairn India are covering them and there is a cut of nearly 5 lakh shares on Cairn and the stock is up nearly 2% in the spot market.