F&O Check: L&T down 7%, adds 20% in OI

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F&O Check: L&T down 7%, adds 20% in OI

The Nifty Futures was at a mild discount on the back of fair bit of cash selling, reports CNBC-TV18's Anichya Shah.

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The Nifty Futures was at a mild discount on the back of fair bit of cash selling, reports CNBC-TV18's Anichya Shah. and you can see that pretty much evident from the volumes that you are seeing, a lot has come from the cash market as well this time.
Some of those smaller stocks in general are seeing some unwinding pressure - stocks that are seeing nice rollovers into this series and the larger guys have become primary shorting candidates. So if you look at the options data is very interesting with 4,900 and 5,000 Call now have combined at 25 lakh shares in open interest. So there seems to be some consensus that there won't be any strong bounce back in the latter half of trade.
Having said that even 4,800 put has added about 5 lakh shares in open interest. So that is going to be one bit of a pivotal support zone, 4,850 was important technically. We have to see now how 4,800 and those put writers convinced about their trade. That 4,800 should act as a bit of a support for the markets.
Stock Specific Action
Stocks that have seen fair bit of shorting pressure, Bank of Baroda continues to see that shorting pressure now down 7% and 16 lakh shares accounts for 100% open interest build up on yesterday's low base. So key exposure to Dubai and this stock has not augured well for it and has been a primary shorting candidate.

Similar trend is spread out in Larsen & Toubro (L&T), which is now down about 7% as well and nice 20% open interest build up on the short side. Big banking stocks like ICICI Bank have also taken it on the chin today. That has seen a 9% open interest build up, down about 5%.

Hindalco is another stock with now 14% open interest build up and about a 5% cash. JSW Steel also looking pretty tentative down 7% with a pretty deep cash.