The Budget is the main focus of the market in the July derivatives series. Ahead of the big day, stocks of debtladen companies and those in the financial space are seeing significant activity. Most of these companies are seeing activity on the bearish side, with Reliance CapitalNSE 2.88 %, Dewan Housing, Reliance Infra and Shriram TransportNSE 1.34 % gaining 10-33 per cent in open interest. Canara BankNSE -0.46 % has seen activity on the bullish side with 18 per cent rise in open interest this series. Bharat Financial Inclusion has shed open interest by 45 per cent ahead of exclusion from the futures and options segment. ET takes a look at five stocks that are gaining high open interest and details their near term outlook.
Dewan Housing Finance
CMP: Rs 73.6
OI Change in July series so far (%): 32.81
Spot Price Change in July series so far (%): -9.75
SENTIMENT FOR the stock has soured after the firm deferred its earnings announcement to July 13. “Volatility is high. It is better to avoid the stock,” said Chandan Taparia, derivative analyst at Motilal Oswal Financial Services. It may fall to Rs 53-55 and face resistance at Rs 83.
Reliance InfrastructureNSE 4.15 %
CMP: Rs 53.05
OI Change in July series so far (%): 13.33
Spot Price Change in July series so far (%): -10.84
THE STOCK is among the biggest open interest gainers in July series. “Good amount of short positions got carried over and we saw fresh shorting in last two sessions. Avoid bottom fishing as there may be further sell-off,” said Jay Purohit, derivatives analyst at Centrum.
Shriram Transport Fin
CMP: Rs 1,054.65
OI Change in July series so far (%): 9.75
Spot Price Change in July series so far (%): -4.0
THE STOCK has seen build-up of bearish positions amid overhang of the liquidity crisis in NBFCS. Macquarie said all the negatives are more than priced in now. The firm has retained outperform rating and raised target price to Rs 1,325 from Rs 1,265.
CMP: Rs 64.25
OI Change in July series so far (%): 24.35
Spot Price Change in July series so far (%): -9.25
RELIANCE CAPITAL has seen addition of short positions as the company deferred declaration of results for the quarter ended March. “Even a small bounce is being sold. The weakness is likely to continue. One should avoid or reduce positions,” said Taparia of Motilal Oswal.
CMP: Rs 285.35
OI Change in July series so far (%): 18.4
Spot Price Change in July series so far (%): 2.46
CANARA BANK is also among the highest OI gainers this series. “Current chart structure and derivatives data clear hints further upmove in the stock. Traders go long for target of Rs 310-315 with stoploss of Rs 275 on closing basis,” said Purohit of Centrum.