Satyam sheds 43 lakh shares in open interest

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

 

The PCR fell below 1 intraday and that is an important cue because we have been seeing that market was trying to form a base around 2,900-3,000 Put where we saw huge amount of Put writing happening in. But today we saw that huge unwinding was happening at 2,900 Put and 3,000 Put. The 2,900 Put shed around 19 lakh shares in OI which is around 43% and also 3,000 Put where we saw shedding of nearly 5 lakh shares in OI. There was a cut of nearly 14%.

 

There is Call writing happening at 2,800 and 2,900 levels. These were the two levels where we were seeing OI addition. 2,800 Call added around 14.5 lakh shares and also the same case with 2,900 Call. But at the lower levels, where the market is trying to find some support is 2,700 where we are seeing some kind of activity buildup happening and 2,700 Put adding 11.5 lakh shares in OI which is around 44%.

 

Stock Specific Action:

 

Satyam has to be the stock of the day. We saw that there was short covering happening in the stock and this has continued for the second day but important is that we are seeing that around 40 there is a kind of resistance which is coming in the stock. In the options side 32.5 Put is getting very active and also we are seeing that there was a cut of nearly 43 lakh shares in OI.

 

There were fresh shorts being built up in many largecaps. DLF ended down nearly Rs 10 and also the OI went up by nearly 13.5 lakh shares. But the important point is the CoC.

 

SBI was at one point of time trading down nearly 10% but recovered from days low, ended down nearly Rs 55 and added around 10 lakh shares in OI. The stock had a negative CoC.

 

Tata Steel witnessed short buildup happening in. The stock ended down nearly Rs 16 and had a buildup of nearly 9.53 lakh shares but again the CoC was in the negative.

 

Unwinding was seen in some metal stocks - case in point - SAIL which ended down nearly Rs 7 with a cut of nearly 9 lakh shares in OI. The stock had a decent turnover of around Rs 100 crore.