Nifty seeing huge call writing at 5300

We are trading at all time high open interest (OI) and the PCR is suggesting that the market is a bit overbought around 1.7 is the level where PCR is trading at. On the volume front there was volatility and volumes were quieter than what we had seen. On the Nifty front, it was interesting to see that at each and every higher level we were seeing unwinding of fresh shorts being building up in the market.

People have been buying or the investors have been buying options and clearly at 5,300 level there was huge call writing seen and the Nifty ended down. The premium has come down by Rs 25 and we have seen addition of nearly one lack shares in OI. On the stock specific front as you rightly said it was all interest rate sensitive pack which was highly beaten today starting with the real estate pack and especially those realty midcap companies were down.

In realty one of the stocks that fell the most was Indiabulls Real Estate, it was down nearly 6.5% and we saw huge build up happening in. Fresh short additions seen on Indiabulls Real Estate and you can see addition of nearly 46 lakh shares which happened on Jaiprakash Associates, the stock was down nearly 4% with rollover of nearly 35% so fresh shorts seen on Jaipraskash as well.

Apollo Tyres one of the stock which had a fabulous run in the last week, today we saw fresh shorts opening up on the stock. The stock was down nearly 4% today with build up of nearly 7 lakh shares on Apollo Tyres today and the stock was down nearly Rs 5.

Suzlon Energy interesting and trader favourite stock ended down nearly 4% with fresh short build up, the stock ended down nearly Rs 3 and we saw build up happening on the stock on the shorter side.

Renuka Sugars still continues to bleed under the global sugar pessimism which is there. The stock was down nearly Rs 3 trading around Rs 75 and we saw build up happening in this stock as well.

So we saw fresh shorts and unwinding happening at higher level and it was interest rate sensitive sector which led it from the front.