Nifty July 3800 Puts adds 5.9 lakh shares

CNBC-TV18, Research Analyst, Anichya Shah :

There were significant shorts and huge volumes, unfortunately we saw turnover clock in about Rs 60 crore which is the highest since November 2007 for the first day post expiry. What's interesting is that the Nifty July 3800 Puts became active today and most of its OI came in today’s session; added 5.9 lakh shares. Those are levels traders have already started playing for and even the 4000 Put saw a huge OI buildup, in fact the only positive is that some bit of Put writing was seen from 3800 to about 4100 levels. Nifty July 4100 Put adds 1.5 lakh shares.

Shorts continued in the Nifty futures -- short rollovers were evident in yesterday’s trading session. It went all the way to a 70-point discount today after trading at about 40-point discount early in the morning immediately shot up and went to a 61-point discount with a huge 9% OI buildup - those 34 lakh shares which were added today.

Metals took a severe beating, so both those steal plays SAIL which is down about 8% saw huge shorting and went into a bit of a discount - 24 lakh shares is about 11% OI buildup on that base and even Tata Steel went into a pretty massive discount and was seeing huge shorting. The stock added 21 lakh shares and is at about 14.75 discount. Currently, no dividend effect yet can be recorded, as there is no data on the NSE on that yet.

HCC is down about 13% -- some of the price movement was pretty shocking today. HCC is at sub-100 levels and 11.2 lakh shares added there. The stock is down about Rs 12 in the spot market.

ICICI Bank saw short rollovers in yesterday’s trading session. Today it is at a huge discount and 6-points of those discount is on account of shorts, while 11-points is account of dividend effect. The stock added 10.21 lakh shares and is down Rs 45 in the spot market. GMR, which was down about 8%, saw huge shorting. The stock added 9.25 lakh shares and slipped into a discount. The stock was given company by a lot of other infrastructure and real estate stocks.