short position: Traders add shorts in banks, telcos

Traders have mounted bearish bets on stock futures in the March derivative contracts despite the rebound in the market. Most of the stocks which have seen the biggest rise in outstanding positions are seeing a build-up of short positions. PSU banks and telecom companies have seen a build-up of bearish positions, while steel and oil marketing companies have seen a build-up of long positions. ET takes a look at the stocks that are seeing high activity in the March derivative series:

Bank of Baroda

CMP: Rs 83.30

OI Change in March series: 46.2 per cent

Share Price Change in March series: -7.39 per cent

Sentiment has taken a hit as the PSU bank has reported elevated levels of stress ahead of its QIP, leading to a build-up of short positions. Rajesh Palviya, head-technicals and derivatives at Axis Securities said the correction in the stock is an opportunity to buy. “It is in a corrective mode for the last six to seven days but this correction is an opportunity to buy on dips near `77. If it is able to hold the level of `77 then we may see a pullback to `93 and then `98 level,” said Palviya.

Steel Authority of India

CMP: Rs 78.80

OI Change in March series: 46 per cent

Share Price Change in March series: 7.65 per cent

Traders continue to add bullish positions in SAIL futures as high international steel prices are expected to cushion the reduction in import duties. Palviya expects SAIL shares to rise to `95-100 in the short term. “It is on the verge of giving a breakout above January high of `80. One can buy at current levels with a stop loss of `73,” said Palviya.

Indus Towers

CMP: Rs 257.50

OI Change in March series: 34.4 per cent

Share Price Change in March series: -5.85 per cent

The stock has seen bearish positions being built, and it is one of the highest open interest gainers in the March series. “The stock failed to sustain at the intermediate highs but we see a buying opportunity on dips near the level of `245-250. Its key support is placed at `240 levels. The stock can reclaim its highs of `282,” said Sandeep Porwal of Ashika Stock Broking.

Bharti Airtel

CMP: Rs 541.20

OI Change in March series: 26.22 per cent

Share Price Change in March series: -6.55 per cent

Although the stock gained 1.7 per cent on Tuesday, the sale of 3.7 crore shares of Bharti Airtel by Singapore-based Integrated Core Strategies (Asia) Pte has dampened sentiment around the stock recently. Sandeep Porwal of Ashika Stock Broking said the double-top reversal pattern on charts is weighing the stock more toward the downside. “Major underperformance is seen below the 50-day moving average… we don’t expect fi reworks till it trades below the level of `559. It may retest the level of `516/506,” said Porwal.

Bharat Petroleum

CMP: Rs 469

OI Change in March series: 23 per cent

Share Price Change in March series: 1.61 per cent

Traders have mounted bullish bets in BPCL futures after its board approved to sell the fi rm’s holding in the Numaligarh Refinery for `9,878 crore as part of the divestment process. “The trend in BPCL is positive. One can buy with support of `450 and a target of `500 in the near term,” said Chandan Taparia, derivative analyst at Motilal Oswal.