Quant Pick - ITC - ICICI Direct

Time frame: Three months

Derivatives & Quantitative Outlook

Broader markets have remained under pressure amid continued cash based selling by FIIs. While underperformance was especially visible in the banking and FMCG space, stocks from technology and metal remained largely immune to the ongoing volatility. We believe the Nifty will move into a consolidation phase where stocks like ITC could be the next major mover. It is likely to retest its October highs in the coming weeks.

ITC has seen significant closure of open interest where the rest of the market is witnessing continued short additions. Both headline indices saw significant short additions with unabated FIIs' selling pressure. Meanwhile, ITC has been witnessing closure of open interest since December series with current open interest one of the lowest seen in almost a year. Since the February series, OI has declined more than 40% in the stock, suggesting ongoing short covering.

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Link to the report

Shares of ITC Limited was last trading in BSE at Rs. 236.20 as compared to the previous close of Rs. 232.00. The total number of shares traded during the day was 2072533 in over 19868 trades.

The stock hit an intraday high of Rs. 237.00 and intraday low of 230.20. The net turnover during the day was Rs. 485106226.00.

Source : Equity Bulls

Keywords

ITC INE154A01025 QuantPick ICICIDirect