Sustained call writing happening at 5200 Nifty

Clearly in the last two days volumes have been very lacklustre. Even today we were very low in the volumes. You can just see on the Nifty the discount clearly remaining around single digit in the last two or three days clearly telling you that each and every higher level you are seeing some fresh shorts unwinding happening in.

Also the turnover was very subdued only Rs 7,000 crore done on the Nifty futures. We are seeing the Nifty down nearly 22 points. Clearly now what is happening is earlier it was 5100 now it is 5200 which is acting as a wall. 5200 call is seeing continuous call writing.

In the morning it was 1-2 premium which was coming down which now we are seeing a cut off of nearly Rs 8.5 on the premium side and an addition of nearly Rs 1.5 lakh shares which is nearly 55 lakh shares outstanding positions is what we are witnessing.

Most of the stocks in the F&O were down today. One of the stock which was down today was India Cement. The stock nearly close down nearly 4.5%, around those levels the company did a QIP around Rs 120. We saw fresh shorts building up but on a very high base 1.7 lakh shares were very minimal.

So we were seeing some cash based selling happening on India Cements. Suzlon which has a fantastic run- Last week the stock was down 3% with a build up of nearly 16.5 lakh shares of fresh shots opening up on Suzlon. IVRCL Infra is another stock on back of those infra IPOs coming in. The stock had a good run. Last week the stock was down 3% today with a build up of nearly 2.5 lakh shares in open interest.

Few stocks which are down on back of unwinding pressure. REC was down 2.5% where we saw a cut off of 4 lakh shares and last stock is Mercator Lines the Baltic Dry Index has been running very sharp last week and most of the stocks were running up in line with that. Today Mercator along with some shipping stocks were down 3% and we saw unwinding happening of nearly 1.5 lakh shares unwinding pressure coming on Mercator in today's trade.