The Hindu Business Line : DLF, Tata Steel add more short positions

Turnover remained moderate at Rs 45,738.28 crore against Tuesday’s turnover of Rs 44,123 crore. Despite thr sharp fall during the second-half of the trading, lot of short positions were square-off on Nifty July future. As a result, the discount for Nifty July future narrowed down considerably to 13.35 points against Tuesday’s discount of about 32 points. It also shed about two per cent or 7.7 lakh shares in open interest.

Among the options, Nifty 3700 and 3800 put were the most active. Besides, these puts, Nifty 4000 and 3900 calls also witnessed active trading.

Interestingly, the Nifty 3900 call witnessed an accumulation of about 40 per cent or 4.71 lakh shares in open interest. This suggests the strong emergence of call writers at 3900 and Nifty might face strong resistance at this level.

India volatility index – often referred as investor fear gauge as it measures the expected short term volatility – slumped to 31.1 points from Tuesday index value of 49.77 – the highest since January 28 crash. This is positive for the market as the fear among investors appeared to have moderated.

Stock futures

Reliance was the most active counter followed by RPL, Ranbaxy and Reliance Capital.

The DLF July future, which witnessed a steep fall of 8.85 per cent, ended in discount at 378.4 against the underlying spot close of 393.4. It added about 1.58 lakh shares in open interest while cost-of-carry jumped to over 100 per cent. All these present a negative outlook for the counter.

The other counter that saw sharp accumulation was Tata Steel, which tumbled by 3 per cent and ended in discount at 612.65 against the spot close of 652.25. It added about one lakh shares in open interest while the c-o-c stood at 83.55 per cent.

Similar is the case for SBI also.

Ranbaxy, which witnessed sharp accumulation of open interest on Tuesday, closed at 470.85 against the spot close of 470.7. It, however, shed 20 lakh shares in open interest, indicating profit taking.

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