The Nifty futures open interest increased by 3.08% while Minifty futures open interest is increased by 0.60% as market closed at 4870.20 levels. The Nifty May future closed at a discount of 17.90 point  against a discount of 1.35 points. The June series closed at a discount of 2.15 points.

The Implied Volatility of at the money options is decreased from 22.25% to 22.06%. The PCR-OI has being increased from 0.89 to 0.91 points. The total OI of the market is Rs 1,25,953 crore and the stock futures OI are Rs 24,899 crore. Few of the liquid counters where we have seen high cost of carry are ABGSHIP, LITL, ALOKTEXT, HCC and GMRINFRA.

FII’s activity in cash market segment was quite muted in yesterday’s trading session; they were net sellers worth of Rs 10 crore only. On  derivatives front they were net sellers in index futures with decent buildup in open interest indicating some shorts buildup by them, while in index options they were net buyers.

On options front 4800-4900 call option have seen some buildup in open interest, while in put option 5000 strike price have seen some unwinding and in 4600 put option, after some unwinding observed in last few trading session the strike price have again seen significant amount of buildup in yesterday’s trading session.

Yesterdays bounce back in the counter of HDFC was mainly due to short covering. The stock has seen significant amount of short positions in it and hence won’t be able to sustain at higher levels and could see some fresh short  positions building at that level. The cost-of-carry in this stock is also negative and we feel the downward trend could continue which could take the stock to around Rs 594. Hence go short with the stop loss of Rs 650.