Unitech adds nearly 38 lakh shares in open interest

Unitech ended down nearly 4.5% today with an open interest build-up of nearly 38 lakh shares. JP Associates was down nearly 4% with a build-up of nearly 26 lakh shares in open interest. Suzlon was down nearly 3.2% with a build-up of nearly 21 lakh shares in open interest.

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

Yesterday, there was some put writing happening at 4,800, but today on the contrary you saw people buying 4800 Put which was not a good sign for the markets. The call writing level shifted from 5,000 top 4,900, which means that the ceiling for the market, people are believing, is not at 5,000, but at 4,900, so the range was between 4,700 to 4,900.

On the Nifty front, we saw fresh shorts opening up; it ended down 1.5% with a huge buildup of 45 lakh shares seen on the Nifty futures, a discount of 10 points.

Stock Specific Action:

Power, Infrastructure, capital goods were beaten down nearly sharply today. Unitech ended down nearly 4.5% today with an open interest build-up of nearly 38 lakh shares. JP Associates was down nearly 4% with a build-up of nearly 26 lakh shares in open interest. Suzlon was down nearly 3.2% with a build-up of nearly 21 lakh shares in open interest. So, massive shorting happened today in all these stocks.

There were also stocks where some huge unwinding was happening, Kingfisher Airlines was down 5% or so and we saw cut of 5.5 lakh shares on this stock. Everest Kanto, which came out with poor numbers, was down 4.5% with a 1.5 lakh share cut in open interest.

Many other stocks like UCO Bank where we saw unwinding happening in. So it was a mix of fresh shorts and unwinding which happened in the market today, but just watch for 4,800 Put which is very important for few days ahead.