Buy Max Financial Services in range of Rs. 590-610
Target: Rs. 705
Stop Loss: Rs. 559
Time frame: Three months
Derivatives & Quantitative Outlook
The insurance space has remained largely range bound in the last couple of months with stocks like Max Financial Services underperforming its peers in the ongoing recovery. We believe the stock has substantial room for upsides. After remaining range bound for some time, the recent up move is likely to continue towards Rs. 700 and higher.
The open interest in the stock has increased gradually in the last two months. Current OI in the stock is at a three-month high. OI in the stock was close to 2.5 million shares in early March. The current OI is no different at present levels while the stock has moved back to its 52-week highs. Considering continuous outperformance and resilience by the stock, we expect fresh accumulation to be seen, which should take it higher in the upcoming sessions.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_MaxFin_Nov20.pdf
Shares of Max Financial Services Ltd was last trading in BSE at Rs.612.65 as compared to the previous close of Rs. 619.2. The total number of shares traded during the day was 101269 in over 2282 trades.
The stock hit an intraday high of Rs. 625 and intraday low of 609. The net turnover during the day was Rs. 62949597.