Reviewing the week for some stock which I pick for short entry on Friday.
ICICI BANK: This stock has shown some interesting spot-future relation. Since the stock got picked up on 2nd June at around 830 levels on spot it is continuously trading on a deep discount on Futures. It has maintained an average 12 points discount in comparison to Spot. Just check out Spot Future chart of ICICI Bank on Friday:
Check out contract and underlying high low on friday we get a huge gap of highs at 854(future) vs 869 (spot). Clearly giving reverse arbitrage and some good shorting opportunity.
In Futures as I mentioned in previous post O.I of 1crore was built up on short side.
Clearly from 1st of June small amount of shorts are building up with an average rate of 2.5lacs shares daily. Volumes at spot continued to be lackluster, will be interesting when it tanks.
Balrampur Chini: Balrampur chini did picked out with the start of the session and closed out above its previous consolidation range of 81-78(thanks to the index), but clearly vloumes and indicators are showing weakness and its very hard to stay up in this range.
Now interesting thing is that long unwinding was seen in this stock in spite of stock closing in green. I've mentioned the scenario of long unwinding earlier too, so past two sessions 2.4 and 8.7 lacs of shares were reduced in open interest, will be interesting to see how built up pans out in coming days as its start of this O.I series and quite difficult to gauge the built up, but once builtup gets decoded this stocks gives good momentum and wild swings, so watch out for this stock.
Hope you liked it.
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