Buy Bharat Electronics in range of Rs. 92-94
Target: Rs. 110
Stop Loss: Rs. 83.5
Time frame: Three months
Derivatives & Quantitative Outlook
Stocks from the PSU space have seen aggressive short additions in the last couple of months as they have failed to perform in line with the market. However, the last couple of weeks have shown some changes in data. It seems short positions are getting closed ahead of the November series or quarterly results.
Bharat Electronics, which has remained under pressure and moved from the highs of Rs. 120 in mid-August to sub Rs. 90 levels in October has accumulated significant short additions in the system. The open interest in the stock has risen by almost 20% since August. Also, despite intermediate closure of positions, over all short bias remained intact. We believe the recent short positions in the stock are still intact and will be get covered near the support zone of Rs. 85-90 levels.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_BEL_Oct20.pdf
Shares of BHARAT ELECTRONICS LTD. was last trading in BSE at Rs.89.95 as compared to the previous close of Rs. 92.55. The total number of shares traded during the day was 257822 in over 1379 trades.
The stock hit an intraday high of Rs. 92.95 and intraday low of 89.05. The net turnover during the day was Rs. 23317507.