INSUBCONTINENT EXCLUSIVE:
Delivery as a percentage of traded quantity on Tuesday was 4.81 per cent, meaning out of every 100 shares traded only around 5 changed hands
This was substantially below three-month average of 6.3 per cent
However, recent fall in deliveries clearly shows speculative interest amid rumours of a resolution plan, which involves promoter paring
stake sharply, has increased dramatically
The stock has been in FO ban since January 4, as total open interest ballooned to 1.23 crore shares against a marketwide position limit
(MWPL) of 1.11 crore shares on Monday.
The OI must fall below 80 per cent of MWPL for stock to exit FO ban
This, along with shorts still holding on to bearish bets, has caused futures to trade a Rs 17.75 discount to cash share Tuesday
bears covered their short positions by 8.9 lakh shares to 56.78 lakh shares outstanding.
On Tuesday, cash share closed at Rs 292.5, down 0.7
per cent, while futures closed down 1.3 per cent at Rs 274.75
This is because of liquidation of some longs on futures --- as with a stock is in FO ban, only existing positions can be settled and fresh
positions cannot be taken
Another feature was an increase in put-call ratio of January options to 0.43 from 0.41 on Monday
This was because bears who were short call options covered more than those covering short put positions
Basis January 31 expiry options, broad range for stock is Rs 150-400.
The stock will break through towards upper band only if a resolution
plan is finalised, said Chandan Taparia, derivatives analyst at Motilal Oswal Financial Services
As of Friday, four clients held over 3 per cent of MWPL in Jet.
