Short Bajaj Auto with target price of Rs 1,460: Angel Broking
The Nifty futures open interest decreased by 2.71% while Bank Nifty futures open interest is decreased by 2.59% as market closed at 5054.75 levels. The Nifty June future closed at a discount of 0.65 point against a premium of 1.55 points.
The July series closed at a premium of 23.45 points. The Implied Volatility of at the money options is increased from 22.49% to 24.41%. The PCR-OI has decreased from 1.48 to 1.44 levels. The total OI of the market is Rs 1,16,709 crore and the stock futures OI are Rs 25,211 crore.
Few of the liquid counters where we have seen high cost-of-carry are ABGSHIP, COREEDUTEC, ALOKTEXT, SKUMARSYNF and GUJFLUORO. FII’s were net buyers in cash market segment; they were net buyer’s worth of Rs 106 crore in yesterday’s trading session.
In options front good amount of buildup was visible in 5,100 call option, while in put option no major buildup was seen except in 5,000 strike price and decent amount of unwinding was observed in 4,900 and 5,100 put option in yesterday’s trading session.
The recent bounce back in the counter of BAJAJAUTO was mainly due to short covering; however the stock in yesterday’s trading session has seen some fresh short positions with negative CoC.
We feel the counter will find difficulty in sustaining at higher levels. Hence we recommend to go short with the target price of Rs 1,460 and stop loss at Rs 1,588.
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