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Option strategy of the day | Significant change in OI in Bharti Airtel signals long call

16 Apr , 2024   By : Debdeep Gupta


Option strategy of the day | Significant change in OI in Bharti Airtel signals long call

Bharti Airtel's stock momentum continues to favor bulls, despite the overall market showing disconcerting global cues. The stock price closed higher on Monday, with an addition of 7 lakhs in Open Interest (OI), totaling over 3 crore.


According to Avdhut Bagkar, Derivatives and Technical Analyst at StoxBox, "Higher OI was seen in both 1200 CE and PE, along with 1240 CE and 1250 CE exhibiting a long build-up. The trading volume stands at 67 lakhs, and the price trades at a 6-point premium."


Bagkar recommends taking a long position in 1220 CE around 21, with a stop loss at 15 and targeting levels of 30 and 37 within a one-week timeframe.


Technical view


"A substantial concentration can be seen in 1200 CE and 1250 CE, highlighting a trend in the long direction. Higher OI was seen in both 1200 CE and PE, along with 1240 CE and 1250 CE exhibiting a long build-up. While there appears a hurdle around the 1250 mark, technical indicators are exhibiting a breakout over it, " said Bagkar.


Bagkar highlights that the April series is exhibiting a rise in IO for Bharti Airtel, despite the price action taking a sideways trend. The PCR stands at 0.46 for the April contract.


"The trading volume stands at 67 lakhs and the price trades at 6 points premium. More participation is expected once the price crosses the 1,250 mark, delivering a breakout towards 1320 levels."

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