Over 90 F&O stocks saw more than 5% rally

CNBC-TV18, Research Analyst, Anichya Shah :

We have not seen a huge jump in the turnover but it definitely did increase. It was at about Rs 43,000-44,000 crore on an average for the last few trading sessions. So we did see turnover pickup to about Rs 50,000 crore in today's trading session. There were over 20 F&O stocks with an OI buildup of more than 10% and over 90 F&O stocks with a greater than 5% rally. There was pretty broad based participation in the markets which is why it is surprising that turnover did not even pickup much more significantly and we didn’t clock in close to about Rs 60,000 crore.

The Nifty Futures saw a mix of initial long buildup and some bit of short covering towards the latter end of the day has made that discount reduce significantly. The discount has had been 40-50 points discount for most of last week, today ended the day close to about 20-25 point discount. So the discount still remains, a lot of shorts still remain in the system but net-net, some bit of long buildup and short covering which is why one is seeing that discount come down significantly.

Stock Specific Action: -

Shree Renuka sold off about 5% yesterday on a bit of negative sugar news, today we saw an equally strong bounceback in the stock. The stock was up 8.6% and saw a huge OI buildup of about 27 odd lakh shares and went into a bit of premium.

Sasken Communications has been seeing a bit of long unwinding over the last few trading sessions, today added a good 1.5 lakh shares in OI build - that’s about 16% OI buildup. The stock went a bit of premium.

Satyam Computer, which unwound some of its OI yesterday, saw long buildup in today's trading session JP Associates and Punj Lloyd two of these infrastructure plays looked extremely strong. JP Associates was up 11% with very strong cost of carry (CoC) and good OI buildup on that counter.

The banking space dominated the first half of trade today. Bank of India was one such example adding about 3.80 lakh shares with a healthy premium, up Rs 14 in the spot market.

In the power stocks which showed a fair bit of strength in today's trading session - Power Grid which is driven up by some short covering and Neyveli Lignite which added about 4.59 lakh shares due to tune of some long buildup.