A short build-up was seen in 62 stocks, including RBL Bank, Larsen & Toubro, Alkem Laboratories, IDFC First Bank, and LTIMindtree. An increase in OI along with a fall in price points to a build-up of short positions.
"Although the market is expecting an earnings rally in India for the next few years, purchasing at these valuations offers lower expected returns. We need to be cautious about because from these prices unless your thesis plays out as you anticipate, it is going to be hard to make money. "
"I cannot talk about specific names but companies where we have seen management changes or we have seen results being below expectations, these are places where markets have been quite brutal and when they are trading at low teens or low double digit numbers, these are places where there is an interesting hunt zone."