Chambal Fertilizer adds nearly 21 lakh shares in OI

Chambal Fertilizer was up nearly 7.5% with a huge open interest build-up of nearly 21 lakh shares. Lanco Infra was up 6.5% and added nearly 4 lakh shares in open interest.

Here is a verbatim transcript of Varinder Bansal's comments on CNBC-TV18. Also watch the accompanying video.

There was a lot of short covering today and that certainly helped the market, nearly 100 points from today's low. The premium of nearly 6.5 points clearly tells you that there was short covering throughout the day and we added huge open interest. Also, the volumes were good today in the markets, especially in the futures and options side.

Option was very interesting today because what was happening in the market was that 4600 and 4700 Put was written, which was not a case day or two before, especially the 4700 Put, you can see addition of 8 lakh shares and the premium coming down by nearly 10 points. After a long time, 5200 Call was getting active in the market, 5200 Call in fact added the second highest open interest today, nearly 6 lakh shares, which is a good sign after a long time.

Stock Specific Action:

Fertilizer space was very active today. Chambal Fertilizer was up nearly 7.5% with a huge open interest build-up of nearly 21 lakh shares, which is nearly 37% for a stock like this.

Lanco Infra saw much more cash base buying happening in; the stock was up 6.5% and added nearly 4 lakh shares in open interest.

It was the metal space which was bleeding throughout the day, whether it was Tata Steel, JSW Steel. Hindalco was down nearly 3.5% with a huge open interest build-up of nearly 35%.

Sun TV was nearly 3.5% build-up of nearly 30% seen in a single trading session, although on a small base of nearly 1.5 lakh shares.

Also, Dabur which was active nearly 4.5% again a small base, but we saw building up happening of nearly 30%. So it was a day when we saw good amount of build-up happening in and short covering happening in Nifty futures.