According to ICICI Direct, The open interest in Petronet has seen a gradual build up in the last three months along with the up move.
ICICI Direct's research report on Petronet LNG
Derivatives & Quantitative OutlookSelect stocks from the gas space exhibited significant resilience in recent times and strongly participated in the market up move. Intermediate declines in these stocks were used as a buying opportunity by market participants. Along with stocks like Indraprastha Gas, Mahanagar Gas, Petronet LNG has also seen a sharp recovery in the last couple of months. Considering significant short build up in Petronet, we believe another round of upside to be seen in the stock.
The open interest in Petronet has seen a gradual build up in the last three months along with the up move. However, post quarterly results, significant OI addition was seen in the stock. It has reached near its February levels of almost 17 million shares. We believe short positions are formed in the stock as it was struggling around | 260 levels. With the recent upsides, these short positions are likely to be closed. This may trigger further upsides.
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