Jan 09, 2013, 03.02 PM | Source: Moneycontrol.com
According to report by ICICIdirect.com, traders can buy IDBI Bank around Rs 113.50-116.50 with a stoploss of Rs 106.50 for a target of Rs 135.
, ICICIdirect.com |
"IDBI Bank has consistently shown a good delivery pick-up in the last couple of months since the news of the merger with Stock Holding Corporation surfaced. Despite jittery markets, the stock did not exhibit any kind of fatigue and continued to remain upbeat. The open interest in IDBI Bank is still at elevated levels and there is room for short covering from current levels. Short traders kept on rolling the short positions in IDBI Bank for the last few months. They averaged their positions and the OI increased to 80% in the last couple of months compared to open interest seen in the October series. We believe the sudden positive move in the stock from 95 to 110 levels had caught short traders on the wrong foot and they are now stuck up in the stock. Initial signs of closure in these short positions were observed in the last couple of sessions."
"We expect continuous positive movement in IDBI Bank due to closure of these short positions. Noteworthy delivery based volume was seen in the stock in the early part of December at 108-114. In the current up move, the stock was able to surpass those levels with relatively higher volumes. We believe the ongoing buying in the stock may sustain and movement towards 135 is expected in the coming sessions. In the options segment, highest open interest was at the January Call 115 strike, which has observed closure of positions. Also, open interest has been rolled into OTM Call strikes. We believe this trend may continue and would provide a thrust to the stock for higher levels."
Buy IDBI Bank in cash in the range of Rs 113.50-116.50, Target- Rs 135, Stoploss at Rs 106.50 for a time frame of 3 months says ICICIdirect.com research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
IDBI Bank had on Tuesday informed the stock exchan
State-owned IDBI Bank today said it proposes to di
"The board of directors of the bank, on February 2
"S&P Global Ratings today lowered its long-term fo
Amid legal agencies investigating bank officials o
Demonetisation, capital constraints and spike in b
ICICI Direct recommended hold rating on Tata Consu