The FO ban on Jet Airways counter has caused punters to shift to cash segment.
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.
The low free float with promoter Naresh Goyal holding 51 per cent and Etihad 24 per cent -- means delivery tends to be low.
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.
On Monday, talks of a resolution plan with Jets lenders caused front month futures contract to spike 12 per cent to Rs 278.35 a share as 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.