Huge short covering witnessed in Vodafone Idea

Today, the stock of Vodafone Idea Limited opened with a gap-up above its 200-DMA. This upward move was supported by a robust volume of more than double of 50-day average volume.  

The F&O data is suggesting a short covering in the stock. On Thursday till 12.30 pm, the stock had surged by nearly 24 per cent while September futures witnessed OI decline by 11,34,00,000, which is nearly 16 per cent. It indicates that there is a short covering in the stock. September month’s current open interest is 59,68,20,000. 

Till 12.40 pm in September expiry, the total call open interest is 5,474 while the put open interest is 2,714. Hence, the open interest wise put-call ratio (PCR) is at 0.50 for September expiry. Currently, for September series, the highest call open interest is at 10 strikes with 1,408 OI. In the money, 9CE and 8CE of September series are also having significant open interest. On the put side, the highest put open interest is at 6 strikes with 535 OI.     

Today till 12.40 pm, from 5 to 18, strike calls witnessed a short covering. On the put side, the 9 to 6 strikes have seen a long unwinding. The current derivative data suggest that Max Pain is at 8 while modified Max pain is at 8 for the monthly expiry. The VWAP is at the 10.36 level. 

Going ahead, on the upside, the level of Rs 11.85, followed by Rs 13 is likely to act as resistance for the stock. While on the downside, the level of Rs 9.90 may act as crucial support.