What the Numbers Say
Feb 1, 2016 Mumbai | ET Intelligence Group: Bank of Baroda (BoB), which tanked almost 11% on Monday, could fall even more in the short term as derivatives traders piled up bearish bets after a disappointing Q3 show.
Open interest (OI) of the stock futures expiring February 23 jumped 25% as the shares tumbled, indicating heavy shorting. On the options front, OI put-call ratio fell to 0.37 from 0.76 on Friday. This indicates that BoB 50 DMA 100 DMA 200 DMA Feb 13, 2017 post results, traders are uncomfortable selling put options (for every 100 calls sold, only 37 puts were sold on Monday, down from 76 a session ear- lier) for fear of the stock falling more and have instead sold more call options in the belief that upside movement is capped in the short term.
Technicals show that the stock has strong support at ₹ 155-157, or around 8% lower than Monday’s closing of ₹ 168. The Monday’s short build up happened at an average price of ₹ 173.6. This means a bounce towards that level could result in creation of fresh shorts for a possible target of ₹ 159-160 before February 23, feels Manoj Vyalar, derivatives analyst, Religare Securities.
BoB stock has moved in a channel since past one year