traders: Traders add short positions in PVR, InterGlobe, Bajaj Finance

Dalal Street has started the May series on a sour note after a strong April series. This is reflecting in the futures segment as well where most of the stocks are seeing momentum on the short side. ET takes a look at five such stocks which are standing out in the May series with huge surge in open interest and details their near-term outlook.

ASHOK LEYLAND

CMP: Rs 47.6

OI Change*: 27.5%

Spot Price*: -9.1%

Traders have added short positions in May futures of Ashok Leyland as the company reported zero sales of M&HCVs and LCVs in April. Chandan Taparia, derivatives analyst at Motilal Oswal, said the stock may correct to Rs 40 unless it crosses the resistance level of Rs 53.

BAJAJ FINANCE

CMP: Rs 2,106.25

OI Change*: 21.73%

Spot Price*: -9.14%

Amid elevated uncertainties around growth and asset quality because of the Covid-19 pandemic and subsequent lockdown, the stock has seen addition of short positions. Swapneel Mantri, senior technical analyst at Sushil Finance, said the stock is likely to face resistance at Rs 2,152- Rs 2,175 in the short term.

BHEL

CMP: Rs 23

OI Change*: 14%

Spot Price*: 2.45%

Analysts said the stock is seeing interest on the long side as the company’s decision to offer foreign companies its idle capacity for ‘Make in India’ will allow unlocking of value and is likely to raise valuation multiples. Mantri of Sushil Finance said the stock has clocked good volumes in the last few sessions and is likely to rise to Rs 24-Rs 25.3 in the coming sessions.

PVR

CMP: Rs 1,012.85

OI Change*: 16.94%

Spot Price*: -11.61%

Extended lockdown has further worried investors about its impact on PVR. Analysts said multiplexes would likely be among the last businesses to receive approval for resumption of operations after lockdown ends. Taparia of Motilal Oswal said the stock can fall to Rs 850 in the near term.

INTERGLOBE AVIATION

CMP: Rs 937.05

OI Change*: 14%

Spot Price*: -5.85%

Traders are adding short positions in InterGlobe, which operates IndiGo airline, because of the challenges posed by Covid-19. Analysts see further challenges ahead as state support for the industry appears unlikely. Mantri of Sushil Finance said the stock may find support at Rs 920-Rs 922. On the upside, a close above Rs 952 can take the stock to Rs 990-Rs 1,000 levels, said Mantri.

*Change in May series