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Midcap stocks that show momentum in F&O space
Since the beginning of February, a lot of momentum stocks are beginning to see renewed interest in the F&O space, in terms of delivery base. The momentum is concentrated along fertilizer, sugar and chemical stocks.
Momentum is returning to some stocks in the midcap space. The index is up nearly 1.5-2% right now. An analysis of the open interest build up and delivery volumes in this space reveals.
Most of the midcap stocks took a tremendous beating in the recent sell-off. But since the beginning of February, a lot of these momentum stocks are beginning to see renewed interest in the F&O space, in terms of delivery base.
This is concentrated primarily along fertilizer, sugar and chemical stocks. If you look at some open interest statistics, stocks like Neyveli Lignite , WWIL and Bajaj Hindustan have rallied between about 20-30%, in the last four-five trading sessions, since expiry. Open interest build up, in terms of the number of contracts, has increased between 11-20%. So, a lot of interest is being seen in these stocks, although the cost of carry has now significantly picked up.
Deepak Fertilizer stands out in terms of delivery statistics. This stock is up 19% since the beginning of February and that is in just four trading sessions. Delivery volumes are up from 11,000, in the beginning of the month, to about 2.87 lakh.
Ispat is another stock that is up 15% in the last four trading sessions. Delivery volumes have picked up from 52.5 lakh to about 68 lakh. Merck Electronics , Orchid Chemicals and ITI are some other stocks, which are seeing tremendous delivery base buying. It has picked up tremendously over the last four trading sessions.
Some stocks that are off their recent lows, but still away from their 52-week highs are Arvind Mills and IFCI . The percentage by which they are off their recent close is 60% and 78% respectively. But they are still about 40% off their 52-week high. Essar Oil , Ispat, TTML and WWIL are some other stocks that have rallied a fair bit from their recent lows. But these are still about 35-40% off from their 52 week highs.
There are some stocks that have shown a consistent run up over the last week in spite of volatility and a fair bit of selling off seen in the larger markets on alternate days.
Visa Steel and Sagar Cements are two such stocks. They have seen a positive rally for the last six-seven days. Goldstone Technologies , Whirlpool , Bilpower and Sical Logistics are some other stocks that have seen a consistent rally since the last four-five trading sessions. So, these are some stocks that have been in action from the midcap space over the last four-five trading sessions.
