According to ICICI Direct, On the F&O front, the open interest in the stock increased sharply in January and February, which are the major short additions.
ICICI Direct's research report on Indian Oil Corporation
Derivatives & Quantitative Outlook
The Nifty moved above its highest Call base of the series placed at the 11000 strike amid continued momentum in global equities. Sectoral heavyweights are the major beneficiary in the current up move. We expect underperforming sectors to witness some catch up exercise in the coming sessions. In the OMC space, BPCL has seen a sharp up move in the last few sessions. We expect Indian Oil Corporation to find fresh momentum. It has remained a laggard in the space while follow up momentum is likely to be seen.
On the F&O front, the open interest in the stock increased sharply in January and February, which are the major short additions. However, once the stock declined towards Rs 85-90 levels, fresh short additions are not seen. The stock has remained in a range. With the stock moving above its prevailing three-month range, we expect short covering to take place, which should take it much higher.
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