Nifty futures in July and Aug series are trading in premium

CNBC-TV18, Research Analyst, Varinder Bansal :

The turnover is good today of course we are approaching the F&O expiry and the turnover has to be good around 45,000 crore done total around 30,000 crore which is the F&O side. Nearly 33% is coming only from the Nifty futures and one can see the Nifty futures both in July series and August series trading in the premium which is around Rs 5-6 also that addition has been around 41 lakh shares which is important.

In the July series we have 32 lakh shares so that means there is constant build up which is happening in the Nifty side. Importantly 4,400-4,500 are the levels where we are seeing that there is some kind of resistance which is happening in and people are writing some put at those levels 4,500 remains very important level as a resistance for the market. But there are many trading favourite stocks which have come up and one can just smell that there is lot of trading which is happening in the market today.

Stocks like Chambal Fertilisers and Nagarjuna Fertiliser. Chambal Fertilisers is up nearly 10%; we have seen addition of nearly 26 lakh shares in the open interest in the July series and also there is an active cost of carry ditto with Nagarjuna Fertilisers; addition of nearly 11 lakh shares in Nagarjuna Fertilizers, huge trading activity.

Some tech stocks are under pressure, TCS will on the top of the list which is down around 5%, that has seen fresh short positions build up and the stock has added nearly 4 lakh shares in the open interest and also the rollover is around 7% - 8% in this stock.

Metal stocks are under pressure; Tata Steel has seen fresh shorts and on the other side SAIL is seeing unwinding happening in it and both the stocks are having negative cost of carry, which clearly suggests that there is pressure building up at the top of the level.

Reliance Power and GMR Infrastructure are the stocks, which are seeing short covering today. But some of the stocks, which are having the highest rollover, are India Cement, Bongaigaon Refinery and Ultratech. India Cement and Ultratech are the two, which are seeing the highest rollover happening in today.