RIL adds nearly 17 lakh shares in open interest

Reliance Industries ended down nearly 3.7% and we saw build-up of nearly 17 lakh shares in the open interest. JSW Steel was down nearly 5.5% with a build-up of nearly 10 lakh shares in the open interest.

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

We were making a point this morning that the markets will not have more support at the bottom because most of the shorts have been already covered in the last few days; nearly 70-80% has covered. So there were not many shorts where you could see short squeeze coming in the market.

Today, the Nifty ended down nearly 2.5% with an open interest build-up of nearly 30 lakh shares. What is not comforting is that still now when the market was able to close above 4,700 mark, on 4,700 Call you were seeing a lot of call writing happening in with a build-up of nearly 14.5 lakh shares, which is over 50% build-up seen on a single trading session and the premium came down by nearly Rs 74. So still people believe that the upside levels are not much from here and 4,700 is the level on the upside is what they are watching on.

Also, you were seeing 4,400 Put which people were buying. On the 4,400 there was buying which was happening in, so people were trading between 4,400-4,700 bands.

Stock Specific Action:

Reliance Industries was the main culprit in the trade today. The stock ended down nearly 3.7% and after a long time we saw build-up of nearly 15% happening on the stock, 17 lakh shares on a base of nearly 1 crore.

JSW Steel was down nearly 5.5% with a build-up of nearly 10 lakh shares which is nearly 25% on a small base of 20 lakh shares.

GMR Infra has been the weakest among the infrastructure stocks whether it's JP Associates , Punj Lloyd or other stocks. GMR Infra was down nearly 7% yesterday, was down 5% today and we saw build-up of nearly 12% happening in the stock, of course a negative cost of carry remains in stock.

HDIL among the midcap realty pack was weakest; down nearly 7.2% with a build-up of nearly 8 lakh shares, which is nearly 10% on the base of the stock. So we were seeing fresh shorts across sectors whether infra, realy, metal.