There is huge short covering seen in stock futures

CNBC-TV18, Research Analyst, Varinder Bansal : There is good action which we are seeing in the futures side, and the turnover is also modest, if we just compare the discount in the Nifty indices, it is between 40-50 points and you have seen more action in the single stock futures, more than the Nifty and there is huge short covering which we are seeing in most of the single stock futures could just began with RNRL, most of the momentum stocks like Nagarjuna Fertilizers, DCB or GMR infra, all these stocks are seeing huge short coverings.

RNRL, the stock has seen around 18 lakh shares and 7% of the total open interest in this stock, we have seen. This stock is up nearly 10% in today’s session. Nagarjuna is an interesting stock which is up nearly 7.5%, this stock has shed nearly 1.5 lakh shares in open interest but remember on Friday’s trading session we saw the stock added nearly 37.5% in the open interest in that session and there is short covering also seen on the stock.

There are some stocks that we are seeing long positions being built up, Deccan Aviation is one of them, and most of the airline package stocks are active today. Deccan Aviation is up nearly 20%. This stock has added nearly 1.2 lakh shares in open interest which is around 6% of open interest seen.

Reliance Cap is active today, this stock is up nearly 10% and this stock has seen build up of nearly 8% in today’s trade and also the CoC is in the positive territory. But one stock to watch in today’s session will be Indus Ind bank this stock is up by a modest 0.5% in today’s session, but if you just see the open interest build up it will be very surprising and the stock has added nearly 5.5 lakh shares in open interest which is around 25% of the open interest build up, so even the stock has not shown much movement in terms of the stock price but yes there are positions which are building up in this stock.