According to ICICI Direct, The banking space has taken the lead in the recent up-move of the market.
ICICI Direct's research report on IndusInd Bank
Derivatives and Quantitative Outlook
The banking space has taken the lead in the recent up-move of the market. Heavily beaten down stocks from the sector have outperformed the rest of the pack. Stock like IndusInd Bank and Bandhan Bank have seen significant reversal in the last one month. Also, considering the high open interest intact in the stock, further momentum due to short covering cannot be ruled out. Unlike most stocks, open interest in IndusInd Bank remained high as it remained under pressure since 2018. The sell-off seen in March has been quite sharp as the stock moved to below Rs 300 levels from highs of Rs 1600 seen in January 2020. The significant sell-off in the stock has invited continued short build-up. Despite the recent recovery, open interest remained high and is at lifetime highs. We expect a round of short covering to be seen in the stock towards settlement, which should take it further high.
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