Finance, Reliance Group stock futures witness surge in interest – Economic Times

Mid-cap stocks are in momentum in the March series as they have seen significant addition in open interests. While shares of Anil Ambani’s Reliance Group companies trading in stock futures have risen 6-19% so far in the March series, shares of finance companies are also witnessing high open interests. The BSE MidCap index has gained 6.7% in the last two weeks, while the Sensex has gained 3% during the same period. ET takes a look at five stocks which are gaining momentum in the new derivatives series and their outlook for the near term:

Muthoot Finance

CMP: Rs 569.6

Stock price change in March series (%): 7.9

OI change in March series (%): 20

Gains in the broader market and high gold prices have helped the stock gain momentum in the March series. “Gold prices are at lifetime high. High gold prices tend to improve business momentum for Muthoot,” said Digant Haria, AVP-Research at Antique Stock Broking. Muthoot has shown low margin compression or liquidity pressures and strongly withstood the NBFC crisis, said Haria. Nagaraj Shetti, technical analyst at HDFC Securities said one can buy the stock at current levels or on a decline to Rs 545, for a target of Rs 600-610 in the near term, with a stop loss of Rs 520.

Oriental Bank of Commerce

CMP: Rs 94.8

Stock price change in March series (%): 14.4

OI change in March series (%): 23.3

The stock has gained as PSU banking space has bottomed out recently and the stock has negated its negative price pattern, said Chandan Taparia, derivative analyst at Motilal Oswal. “It is also turning from its deep oversold territory, so some short covering also could take it on higher zones,” said Taparia. He expects the stock to rise to Rs 100-104 level in the near term. Oriental Bank of Commerce shares have fallen 3.5% in the last one year, underperforming the Nifty PSU Bank index which has fallen 1.4% in the same period.

Reliance Power

CMP: Rs 12.8

Stock price change in March series (%): 18.6

OI change in March series (%): 67.9

The rally in broad markets has lifted shares of Reliance Power, which had slumped 60% in the February derivatives series. Reliance group companies controlled by Anil Ambani had witnessed severe selling pressure in February after Reliance Communication’s statement on February 1 that it would file for bankruptcy. Technical analysts said the recent gains in the stock should be viewed as a trading bounce and investors should avoid the the counter.


CMP: Rs 712.9

Stock price change in March series (%): 8.4

OI change in March series (%): 9

Escorts has also gained momentum in the March series after Escorts Agri Machinery reported a 12% increase in tractor sales at 7,240 units in February. Domestic tractor sales in February increased 9.9% from a year ago. The stock has bottomed out on a short-term basis, analysts said. “Rs 680 is the support. The upside can extend more towards Rs 740 levels,” said Taparia of Motilal Oswal. Taparia said one can buy the stock at current levels.

Allahabad Bank

CMP: Rs 52.3

Stock price change in March series (%): 9

OI change in March series (%): 7.2

The Reserve Bank of India has recently removed Allahabad Bank out of the Prompt Corrective Action framework recently. This has boosted sentiment for the stock, which has gained just over 3% in the last one year. “Buying can be considered at current market price or on dip to Rs 48, for a target of Rs 58-Rs 60 in one month,” said Shetti of HDFC Securities.

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