Long Cairn India for target of Rs 338: Angel Broking
The Nifty futures open interest increased by 1.28% while BankNifty futures open interest is decreased by 1.18% as market closed at 5322.95 levels.
The Nifty Aug. future closed at premium of 27.10 point against premium of 16.75 points. The Sept. series closed at a premium of 57.25 points. The Implied Volatility of at the money options is decreased from 14.19% to 14.06%.
Nifty PCR-OI decreased from 1.17 to 1.15 levels. The total OI of the market is Rs 1,39,688 crore and the stock futures OI are Rs 32,005 crore.
Few of the liquid counters where we have seen high Cost-of-Carry are INDIAINFO, VIDEOIND, SKUMARSYNF, OFSS and JPPOWER.
FII’s were net buyers in cash market segment; they were net buyers worth of Rs 337 crore On derivatives front they were net buyers in index futures, however the quantum of buying was quite minimal and in index options also they were net buyers with decent buildup in open interest in yesterday’s trade.
On options front 5400 and 5700 call option has seen good amount of buildup in open interest followed by some unwinding in 5500 strike price, while in put option not much of buildup was observed however some unwinding was seen in 4800 put option in yesterday’s trading session.
We have seen significant amount of short positions in CAIRN since last few trading session. However in yesterday’s trade the stock has seen some signs of short covering and CoC has also jumped significantly indicating some buying was observed at lower level.
Hence we recommend to go long on this stock with the target price of Rs 338 and stop loss at Rs 314.
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