Jet AirwaysNSE 12.41 % could extend Monday’s 15.5 per cent rally on short covering in the stock’s F&O counter and on increased cash-based buying, with odds of a new buyer for the airline increasing after Naresh Goyal stepped down from the board. The stock exited an F&O ban after 10 straight sessions through Monday as traders covered their bearish bets after news of Goyal’s departure surfaced.
The development also caused an over three-fold spike in the number of shares traded and ..
The discount in the futures was due to huge short build-up over the past sessions. This is expected to narrow in the coming days with the stock exiting the F&O ban period from Tuesday.
Given that a significant number of shorts exist in both futures and options, derivatives analysts like Rajesh Palviya of Axis Securities and Chandan Taparia of Motilal Oswal Financial Services believe that more traders could be forced to cover their bearish bets, causing the stock to potentially test Rs 300 over the next few sessions.
“The stock has been beaten down, so there’s likely to be some respite given Monday’s development,” said Palviya.
Options on Jet expiring March 28 show the stock faces resistance initially at Rs 260, followed by Rs 300 and then Rs 360 and Rs 380.
“A test of Rs 300 can’t be ruled out in the current series,” said Taparia.
The April contract witnessed open interest rising 77 per cent to 18.7 lakh shares and the price of the contract jumping 14 per cent to Rs 222, indicating long rollover bias from the March series. Analysts also said OI could have also risen on traders paying a penalty of aro ..
The development also caused an over three-fold spike in the number of shares traded and ..
The discount in the futures was due to huge short build-up over the past sessions. This is expected to narrow in the coming days with the stock exiting the F&O ban period from Tuesday.
Given that a significant number of shorts exist in both futures and options, derivatives analysts like Rajesh Palviya of Axis Securities and Chandan Taparia of Motilal Oswal Financial Services believe that more traders could be forced to cover their bearish bets, causing the stock to potentially test Rs 300 over the next few sessions.
“The stock has been beaten down, so there’s likely to be some respite given Monday’s development,” said Palviya.
Options on Jet expiring March 28 show the stock faces resistance initially at Rs 260, followed by Rs 300 and then Rs 360 and Rs 380.
“A test of Rs 300 can’t be ruled out in the current series,” said Taparia.
The April contract witnessed open interest rising 77 per cent to 18.7 lakh shares and the price of the contract jumping 14 per cent to Rs 222, indicating long rollover bias from the March series. Analysts also said OI could have also risen on traders paying a penalty of aro ..
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