RPL sheds 8 lakh shares in open interest

CNBC-TV18’s Research Analyst, Anichya Shah has given F&O highlights.

No positive cues coming from the F&O space. A similar trend what we saw last week a lot of stocks are selling off from pretty high impact cost, very low volumes in a sense. We have seen stocks sell-off between 5-10% with hardly any change in that open interest. High amount of impact cost and I suspect that the very few buy orders, if there are any will be placed at significantly lower prices.

In Nifty high bit of intra-day trading happening it’s being, between 5-15 point discount. Some bit of shot covering keeps on coming in at 4500 mark. What’s evident is that a lot of traders are choosing to go short on the market by writing 4700-4800 call options. These two options have seen a fair bit of open interest build up over the last week continue to do so in today’s market and implied volatilities (IV’s) at around 40% they are getting a pretty good premium considering we are just one-week away from that F&O expiry.

Now looking at some of the stocks, Edelweiss Capital is down about 10% and this is only with a change of about 5500 shares in open interest. So you can see the level of impact cost affecting most of these stocks. Two other stocks that saw good open interest build up last week looked poised for a rally actually seen a fair bit of unwinding pressure, one example is RPL shed about 8 lakh shares another one from the oil and gas space is Cairn India, which looks strong last week shedding about 2.3 lakh shares. So fair bit of long unwinding in these two stocks.

Other stocks like Hindalco and GMR Infrastructure stocks that go in action last week are seeing some semblance of short build up. Only one real stock bucking the negative trend has been Hindustan Unilever some fresh longs being added in the stock.