RVNL, Vodafone Idea see huge long build-up; ABFRL open bets jump over 100%

Business Standard

6 days ago

The futures & options (F&O) market was buzzing in trade on Wednesday, with new entrants Rail Vikas Nigam Limited (RVNL) and Uno Minda witnessing significant traction on the buy-side of trade. Both these stocks, along with 7 others were added to F&O segment from June onwards. The other new stocks in F&O were - Bharat Dynamics, Blue Star, Mazagon Dock Shipbuilders, Fortis Healthcare, Kaynes Technology, Mankind Pharma and Piramal Pharma. Data from the National Stock Exchange (NSE) shows that RVNL, Vodafone Idea and Uno Minda witnessed huge long build-up in trades on Wednesday, while the NSE Nifty 50 held mild gains and was up 0.2 per cent around 24,600 levels. In general, stocks moving up in tandem with a rise in open interest (OI) are said to witness long build-up. Similarly, on the other hand, stocks falling alongside a rise in OI are considered as stocks with short build-up.
Stocks with long build-up
RVNL June futures surged over 7 per cent to ₹435, alongside over 80 per cent increase in open interest. Vodafone Idea stock rose nearly 2 per cent backed by a 76 per cent surge in OI, while Uno Minda gained 3 per cent on the back of 51 per cent rise in OI. Among others Fortis Healthcare and Titagarh were also seeing buying interest in the F&O segment on Wednesday.
Stocks with short build-up
Aditya Birla Fashion Retail witnessed a hefty 108 per cent jump in OI, while the stock tumbled 10 per cent to ₹77.74 levels. The stock is likely to have witnessed build-up of fresh short positions. The stock is likely to enter F&O ban period as the market-wide limit has soared over 122 per cent, shows data. Stocks that exceed 95 per cent of the market-wide limit enter F&O ban period on the following day. Meaning, fresh positions are not allowed in such stocks, until they exit the ban period. That apart, Tata Technologies, Kaynes Technology, Mazagon Dock Shipbuilders were some of the prominent stocks to witness possible short build-up in today's trading sessions.
Stocks with high Put-Call-Ratio (PCR)
Solar Industries PCR ratio stands at 1.5. This ratio implies presence of 3 open positions in Puts for every 2 open bets in Calls. In general, higher PCR indicates a likely positive bias for the underlying stock, as Put writing at particular Strikes tend to act as support levels. Max Financial Services, BPCL, Aarti Industries, Kaynes Technology, Eternal (former Zomato), Adani Enterprises, Marico and Paytm are the other F&O stocks with a PCR ratio in excess of 1.