Derivatives Strategy - BPCL - Covered Call - ICICI Securities

Recommendation

Buy BPCL June future at Rs. 362-367 & Sell 380 Call at Rs. 7-9
Target: Rs. 389
Stop loss: Rs. 344
Time frame: Till June expiry

Rationale

Petrol and diesel prices have been increasing for the last 12 days, which can boost oil marketing stocks. BPCL has consolidating near Rs. 360, the price level from where supply was seen in the stock in April.

Open interest in the stock has been declining on account of closure of short positions. It is a good sign that the stock is witnessing short covering near the previous supply zone. This should bring good upsides in the coming days.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_DerivativesStrategy_BPCL_Jun20.pdf

Shares of BHARAT PETROLEUM CORPORATION LTD. was last trading in BSE at Rs.370.15 as compared to the previous close of Rs. 364.75. The total number of shares traded during the day was 536519 in over 7302 trades.

The stock hit an intraday high of Rs. 376.25 and intraday low of 359.75. The net turnover during the day was Rs. 196838942.

Source : Equity Bulls

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