Bharti Airtel's stock momentum continues to favour bulls, despite the overall market showing disconcert on global cues. The stock price closed higher on Monday, with an addition of 7 lakhs in Open Interest (OI), totalling over 3 crore.
According to Avdhut Bagkar, Derivatives and Technical Analyst at StoxBox, "Higher OI was seen in both 1200 CE and PE, along with 1240 CE and 1250 CE exhibiting a long build-up. The trading volume stands at 67 lakhs, and the price trades at a 6-point premium."
Bagkar recommends taking a long position in 1220 CE around 21, with a stop loss at 15 and targeting levels of 30 and 37 within a one-week timeframe.
Payoff chart of 1220 CE long position
Technical view
"A substantial concentration can be seen in 1200 CE and 1250 CE, highlighting a trend in the long direction. Higher OI was seen in both 1200 CE and PE, along with 1240 CE and 1250 CE exhibiting a long build up. While there appears a hurdle around the 1250 mark, technical indicators are exhibiting a breakout over it, " said Bagkar.
Bagkar highlights that the April series is exhibiting rise IO for Bharti Airtel, despite the price action taking a sideways trend. The PCR stands at 0.46 for the April contract.
"The trading volume stands at 67 lakhs and the price trades at 6 points premium. More participation is expected once the price crosses the 1,250 mark, delivering breakout towards 1320 levels."
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