Adani bonds rally, stocks fall after Hindenburg 2.0

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Also read | Mint Explainer: Hindenburg's latest salvo against the Sebi chief While the Nifty futures contract expiring on 29 August rose 0.75% to 24,585.5 in the week through 16 August, the AEL contract expiring on the same date fell 2.7% to ₹3,119.35 a share during the period. Adani Ports’ contract slipped 2.8% to ₹1,497.35.

The fall in prices of the two contracts has been accompanied by a minor rise in their open interest (OI)-outstanding buy-sell positions. A fall in prices and rise in OI imply bearish sentiment.

The AEL active futures contract has seen its OI rise from 2.02 crore shares to 2.07 crore shares, while Adani Ports' OI is up from 2.75 crore shares to 2.8 crore shares. "Retail participation in the group stocks has been low and unless the latest events don't snowball into a political volcano, I don't see any material impact on the stocks or other instruments of the group," said Rajesh Palviya, SVP, head technicals & derivatives, Axis Securities.

"The activity seen post the report would be more institutional in nature and by some punters taking shorts." Also read | Adani Ports’ stock at new highs as investors cheer growing footprint SK Joshi, ED, Khambatta Securities, said small investors should avoid the counters until greater clarity emerges on the latest allegations by the short-seller. On the options front, too, call option contracts on AEL have witnessed a rise in their OI as their prices fell, implying more short creation between 9 and 16 August.

For example, the 3,200-strike call expiring on 29 August plummeted 66% to ₹29.40 as its OI increased from 24.82 lakh shares to 25.57 lakh shares over the week through 16 August. This implies option traders expect the stock to be under pressure and to pocket the