NSE will start Short Selling in near Future

The National Stock Exchange (NSE), plans to offer a new system for short sales within the next few weeks.

Short selling shares is selling without having them, is possible only in the derivatives segment. NSE plans to allow investors to borrow shares and then sell them in the cash market through the securities lending. This mechanism was introduced some time ago, but has not picked up. NSE will now introduce a revised mechanism to facilitate short selling.

Stcok futures and option trend

The 5,000- and 5,100-strike calls saw open interest build-up and profit-booking in 5,200- and 5,300-strike calls, indicating fresh weakness. The participants unwound 5,200 and 5,300 put optionsas they expected the market might face strong resistance above 5,200. There was significant build-up of open interest in the 4,900 put (open interest up three million shares) and the 4,800 put (open interest up 1.12 million shares) through buy trades this is simply indicating hedging of long positions.

Among stock futures, the futures closed above the upper band of value areas on strong volume. The volume and price movement around time-price opportunity areas indicate the stock has the potential to go near Rs 607. Infosys Technologies and Bharti Airtel are expected to rise on buying support. Tata Steel, Tata Motors and Reliance Industries closed in a Doji pattern, indicating indecisiveness at current levels.