Buy Century Textiles; target of Rs 695: ICICIdirect

ICICIdirect.com’s research report on Century Textiles

“In the last few months, Century Textiles has been forming a base near | 500. After making highs in September 2014, the stock witnessed profit booking and moved towards | 500. Long liquidation was seen in the last couple of months as open interest declined to the tune of 20% from highs. However, the stock has again started witnessing value buying at lower levels, which is also reflected in the fresh long additions. It suggests that the stock is getting ready for another round of up move.”

“The open interest in Century Textiles has increased sharply since the inception of the March series and added almost 18% open interest in the last couple of weeks. We believe fresh long positions in Century Textiles have been formed and they are looking for much higher returns. Recent upsides in the stock have already triggered closure of short positions in the Call options segment. The highest open interest in Call options is placed at the 600 strike for the March series, which is already witnessing closure of positions. Further short covering is likely to be seen above this level.”

“Recent upsides in the stock have already triggered closure of short positions in the Call options segment. The highest open interest in Call options is placed at the 600 strike for the March series, which is already witnessing closure of positions. Further short covering is likely to be seen above this level. Buy Century Textiles in the range of Rs 574-584, Target Rs 695, Stop Loss Rs 520, Time Frame: Three months”, says ICICIdirect.com’s research report.

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