IndusInd Bank - Quant Pick - ICICI Securities

Recommendation

Buy IndusInd Bank in the range of Rs. 482-498
Target: Rs. 585
Stop Loss: Rs. 438
Time frame: Three months

Derivatives & Quantitative Outlook

The banking space has taken the lead in the recent up-move of the market. Heavily beaten down stocks from the sector have outperformed the rest of the pack. Stock like IndusInd Bank and Bandhan Bank have seen significant reversal in the last one month. Also, considering the high open interest intact in the stock, further momentum due to short covering cannot be ruled out.

Unlike most stocks, open interest in IndusInd Bank remained high as it remained under pressure since 2018. The sell-off seen in March has been quite sharp as the stock moved to below Rs. 300 levels from highs of Rs. 1600 seen in January 2020. The significant sell-off in the stock has invited continued short build-up. Despite the recent recovery, open interest remained high and is at lifetime highs. We expect a round of short covering to be seen in the stock towards settlement, which should take it further high

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_IndusInd_Jun20.pdf

Shares of INDUSIND BANK LTD. was last trading in BSE at Rs.481.95 as compared to the previous close of Rs. 520.65. The total number of shares traded during the day was 3191310 in over 65383 trades.

The stock hit an intraday high of Rs. 530 and intraday low of 476.25. The net turnover during the day was Rs. 1599646601.

Source : Equity Bulls

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