Strength has been coming back in the market from the point Nifty crossed the 4,080-mark. But the important thing is that it is not majorly short covering reports CNBC-TV18's Varinder Bansal. There are build up on the long side, which is happening in Nifty, trading around 4,870 with addition of nearly 16.5 lakh shares. There is a premium of nearly 3-4 points.

On the options side, it is very interesting because you are seeing that there is constant Put writing now happening anywhere between 4,600-4,800 and 4,600 is where we have seen that the premium going down by nearly 30%. We are seeing addition of nearly 3.5 lakh shares and ditto with either 4,700 or 4,800 Put where we are seeing Put writing happening in.

Stock Specific Action:

The entire hotel pack is active today. Indian Hotels for example is the stock which is up 4% with a good build up of nearly 14.5 lakh shares which translates into nearly 20% open interest built up on a base of this stock.

Bharti, Reliance Communications both the stocks are down today on the back of short build up. Bharti is down nearly 3.2% with open interest build up of nearly 15 lakh shares that we have seen on the stock.

Steel Authority of India Ltd (SAIL) is up today on the back of huge short covering that we have seen. The stock is up nearly 3.5% but we are seeing a cut of nearly 6 lakh shares happening in. So, short covering is happening in SAIL.

Last stock is Polaris where we are seeing some unwinding happening in. Citigroup has been selling via Orbitech, which is one of the arm in this stock and recently sold nearly 5% stake, the stock is down nearly 2.5% with an open interest cut of nearly 2 lakh shares which is 7.5% on this base of Polaris.