Buy Torrent Power in the range of Rs. 320-327
Target: Rs. 385
Stop Loss: Rs. 291
Time frame: Three months
Derivatives & Quantitative Outlook
In the current volatile market conditions, buying is more visible in the midcap space while the Nifty continues to consolidate around 11000. In the power segment, Torrent Power has significantly outperformed its peers in the last couple of years. It remained almost immune to selling pressure seen in the sector while the stock tested its highest levels since 2010 last month. We believe the recent declines in the stock are a buying opportunity as it is likely to move towards its life-time highs.
On the F&O front, the open interest in the stock has remained lower and it did not witness any major accumulation after the decline seen in February and March. The OI in the stock was close to 2 million shares in early March and the current OI is no different at current levels while stock has moved back to its highs. Considering continuous outperformance and resilience by the stock we expect fresh accumulation to be seen, which should take it higher in the coming sessions.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_TorrentPower_Jul20.pdf
Shares of TORRENT POWER LTD. was last trading in BSE at Rs.325.55 as compared to the previous close of Rs. 320.1. The total number of shares traded during the day was 26011 in over 769 trades.
The stock hit an intraday high of Rs. 328.4 and intraday low of 321.05. The net turnover during the day was Rs. 8475915.