Buy Torrent Power in range of Rs. 340-350
Target: Rs. 418
Stop Loss: Rs. 314
Time frame: Three months
Derivatives & Quantitative Outlook
The power space has remained resilient in the last couple of months with stocks like Torrent Power underperforming its peers. We believe the stock has significant room for upsides. After remaining range bound for some time, the recent up move is likely to continue towards Rs. 400 and above levels.
The open interest in the stock has increased sharply in the last two months and current OI in the stock is at a six-month high. As the stock has failed to participate with a market move, we expect short positions to have been formed in the stock. Last few sessions of the February series saw closure of open interest suggesting ongoing short covering. We believe the ongoing short covering will continue, which should take the stock higher in the coming trading sessions.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_TorrentPower_Feb21.pdf
Shares of TORRENT POWER LTD. was last trading in BSE at Rs.372.7 as compared to the previous close of Rs. 345.05. The total number of shares traded during the day was 180607 in over 3092 trades.
The stock hit an intraday high of Rs. 376 and intraday low of 343.1. The net turnover during the day was Rs. 65534220.