Shorting seeping in near 4,800 mark on Nifty futures

It has been an okay day of trade, as 4,800 still acted as a bit of a roof for the market. There was some bit of selling pressure seeping in every time we go there. At one point of the day we were slightly above that level, and that triggered a bit of short covering. But again the selling pressure came back into full force and you saw that bit of a dip towards the end of trade.

4,700 put, the maximum outstanding open interest is what you are seeing there and 6-6.5 lakh share build up at the 4,600 put. On the Nifty futures front, a bit of a discount because that shorting seeps in again near the 4,800 mark and it goes into a bit of a discount. It is a bit of a range. So at 4,700 you see about a 4-5 point premium and that subsides as we go to higher levels.

So the 4,700 put added about 6.8 lakh shares in open interest. So highest outstanding open interest - some confirmation by the put writers that for the time being they believe significant support exists there. Simultaneously, the 4,800 and the 4,900 call continue to act as some bit of open interest there close to about 6 lakh shares. So it is slightly rangy now from the trading action perspective but volatile within that range.

Stock specific action - Patni was one interesting stock, with a build up throughout the day. Usually not a very liquid stock but its 6% upmove was supported by 2 lakh shares in open interest build up.

Besides that, there is a whole host of other stocks from the metal space that saw a fair bit of focus. But HCL Technologies was an interesting late mover in trade with 2.1 lakh shares in open interest build up and a pretty smart move on that counter as well.

We are focusing on Lanco which was a very good stock again, up about 5%, as it extended yesterday's upmove of 4% with a 26 lakh share open interest build up. So on a big base that is about a 7-8% open interest build up.

Finally Bombay Rayon from among the smaller guys inched into a bit of premium and a nice 11-12% open interest build up, again a late surger in trade. But for most part of the day, trading interest was in the metal stocks. Steel Authority of India Ltd (SAIL) and Tata Steel more on the longer side whereas some of the shorting pressures continued on in the non-ferrous pack vis-à-vis Hindalco.