INSUBCONTINENT EXCLUSIVE:
The Union budget next month and global developments around US-Iran geopolitical tensions are key focus areas of markets in the ongoing
Oil marketing companies are seeing traders trimming their bullish bets and adding short positions due to the US-Iran tensions while
stock-specific reasons have impacted Sun TV Network and Titan Company
ET takes a look at 5 stocks which are seeing a large build-up in the January derivatives series and details their near-term outlook
JUBILANT FOODWORKSCMP in: Rs 1,682.75
Change in OI in Jan series so far: 35.8%
Change in share price in Jan series so far: 5.4%
Traders
are turning bullish on the stock as competition from food tech apps is reducing
“Food tech apps are facing issues from restaurants delisting
They are also facing issues on commissions that they are charging restaurants
“Competitive intensity from food tech apps has reduced, which is positive for Domino’s,” said Abneesh Roy, senior VP, institutional
Chandan Taparia, derivative analyst at Motilal Oswal said the stock is likely to rise 8-10% in the immediate term.
SUN TV NETWORKCMP in: Rs
430.10
Change in OI in Jan series so far: 34.1%
Change in share price in Jan series so far: -3.4%
Bearish positions were built in the stock
futures of Sun TV as Trai recently made amendments to the new regulatory framework for cable and broadcasting services under which cable TV
users will be able to access more channels at a lower subscription price
The trend is negative on technical charts as the stock has been making lower top-lower bottom and shorts are intact, said Taparia of Motilal
“It has hurdles at 445 zones while weakness can drag it towards 410 levels,” said Taparia of Motilal Oswal.
INDIAN OIL CORPORATIONCMP
in: Rs 126.85
Change in OI in Jan series so far: 19.8%
Change in share price in Jan series so far: 1.4%
Traders have built short positions
as well as unwound long positions in the stock futures of Indian Oil Corporation in the January series as crude oil prices spiked due to
rising geopolitical tensions in the Middle East after a US airstrike killed Iranian General Qasem Soleimani
The medium-term trend is in pressure but it is turning from key support of Rs 120 zones, said Chandan Taparia of Motilal Oswal
“Some bounce may be seen towards Rs 135 with major support below Rs 120 zones,” said Taparia.
TITAN COMPANYCMP in: Rs 1139.7
Change in
OI in Jan series so far: 16.9%
Change in share price in Jan series so far: -4.43%
Titan has seen a build-up of short positions in the
current derivative series
According to reports, Tata Group firm, on Saturday, said its December sales were hit because of protests in North East and other parts of
“Performance remains subdued due to weak market dynamics
Jewellery segment, which had started on a good note starting 3Q, slowed down later,” said Phillip Capital
Titan could see some bounceback on Monday as Street was expecting jewellery revenue growth to be lower than 10% in Q3 of FY20.
APOLLO
HOSPITALSCMP in: Rs 1486.10
Change in OI in Jan series so far: -16.4%
Change in share price in Jan series so far: 7.7%
The company recently
said that the Irdai has approved HDFC’s bid to acquire 51.2% in Apollo Munich Health Insurance Company
This has led to short-covering in the counter
“The net cash proceeds should be utilised by promoters to pare its personal debt and reduce its pledge to 20-25% (from 58%), in line with
At company level, this transaction along with the SAP business restructuring (expected completion by March 20) should generate Rs 600 crore
cash, which should help in improving its balance sheet,”said Morgan Stanley.
