Quant Pick - Coal India - ICICI Direct

Time frame: Three months

Derivatives & Quantitative Outlook

While the Nifty remained largely range bound, broader markets continued to move higher. Even in the Nifty, low weighted stocks from the metals & mining space are witnessing continued buying at every decline and fared better than index heavyweights. We believe the continuing participation from low weighted stocks should persist. We expect renewed buying in stocks like Coal India that has been consolidating for a couple of weeks after a sharp up move was seen in commodity prices.

The open interest in Coal India has been declining gradually in the last couple of months. It has come down to the lowest in the current series since June 2021 while the stock has been trading with a positive bias. We believe short positions are out of the system and fresh longs are likely to be seen from here onwards, which should lead to a swift further up move in the stock towards Rs. 230 levels.

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Link to the report

Shares of Coal India Limited was last trading in BSE at Rs. 191.25 as compared to the previous close of Rs. 185.95. The total number of shares traded during the day was 745339 in over 6911 trades.

The stock hit an intraday high of Rs. 193.65 and intraday low of 185.55. The net turnover during the day was Rs. 142104093.00.

Source : Equity Bulls

Keywords

CoalIndia INE522F01014 QuantPick ICICIDirect