Nifty futures trading below 4,000 level

CNBC-TV18, Research Analyst, Anichya Shah:

The turnover was pretty low since morning and even though a lot of stocks were rallying and in the first latter half of the day, a lot of stocks rallied further than 5%. They were doing so on pretty low volumes. So it was never really a convincing rally on the fact that volumes were pretty low. On top of that the Nifty discount continued to increase as we inched to the higher levels. At the 4100 level one saw a fair bit of shorts coming in which is why the discount increased from about 35-points to 50-points.

What is interesting in today’s trading sessions is that the 4000 Put added 13 lakh shares in OI. That’s about a 49% buildup from yesterday’s base and even the 4100 Call on the upside saw a huge bit of OI buildup in the latter half of trade. So, considering that the futures are trading below that 4,000 level, it would be very interesting to see how trade pans out tomorrow.

Since we are in result week and Infy being the first major result, we are seeing a fair bit of interest in those IT stocks - Infosys and Satyam. Infosys up about 2.7% and 3.9 lakh shares added there and the stock is in a bit of premium.

Nagarjuna Construction was driven up by a fair bit of short covering in today’s trading session. The stock shed about 3.30 lakh shares - that about shedding 20% odd in OI and rallied about Rs 10 in the spot market.

Bajaj Hindusthan saw in fact a fair bit of short buildup in today's trading session. The stock added about 4.41 lakh shares and went into a bit of a discount and it traded 11 points down.

Two stocks, which were not pretty illiquid on the F&O space, saw a fair bit of trading action today. One is Bata, which added about 1.07 lakh shares - that’s about 24% OI buildup on yesterday’s base. Hero Honda and M&M - these were two auto stocks that were buzzing in today's trading session. Hero Honda adding about 1.31 lakh shares that’s 11% OI buildup and the stock was Rs 23 in the spot market.