Quant Pick - Indian Oil Corporation - ICICI Securities

Recommendation

Buy Indian Oil Corporation in the range of Rs. 88-90
Target: Rs. 108
Stop Loss: Rs. 80.1
Time frame: Three months

Derivatives & Quantitative Outlook

The Nifty moved above its highest Call base of the series placed at the 11000 strike amid continued momentum in global equities. Sectoral heavyweights are the major beneficiary in the current up move. We expect underperforming sectors to witness some catch up exercise in the coming sessions. In the OMC space, BPCL has seen a sharp up move in the last few sessions. We expect Indian Oil Corporation to find fresh momentum. It has remained a laggard in the space while follow up momentum is likely to be seen.

On the F&O front, the open interest in the stock increased sharply in January and February, which are the major short additions. However, once the stock declined towards Rs. 85-90 levels, fresh short additions are not seen. The stock has remained in a range. With the stock moving above its prevailing three-month range, we expect short covering to take place, which should take it much higher.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_IOC_Jul20.pdf

Shares of INDIAN OIL CORPORATION LTD. was last trading in BSE at Rs.93.4 as compared to the previous close of Rs. 88.3. The total number of shares traded during the day was 3470791 in over 11947 trades.

The stock hit an intraday high of Rs. 94.65 and intraday low of 87.75. The net turnover during the day was Rs. 321131025.

Source : Equity Bulls

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