Petronet LNG and auto giant Maruti Suzuki shares may gain up to 15% in the next three months, analysts at ICICI Direct said. The brokerage firm has analysed the performance of both the scrips in the derivatives market and has given bullish outlooks for three months based on the trading activity. Domestic markets have started the year on a strong note with Sensex and Nifty gaining more than 3% each. S&P BSE Sensex and NSE Nifty 50 are now just close to 3% away from their all-time highs. The recent run-up has been helped by the return of Foreign Institutional Investors (FII), positive economic outlook despite the ongoing covid-19 pandemic, and the expected strong quarterly results.
Maruti Suzuki India – Buy
Target – Rs 9,150 | Stop loss – Rs 7,490
The auto giant has been in a strong up-trend since the last days of 2021. Maruti Suzuki India has rallied more than 11% since December 30, to now trade at Rs 8,110 per share. The up-move comes on the back of short-covering in the stock, said analysts at ICICI Direct. They added that in the F&O space, short positions in the stock have declined considerably in the last 10 trading sessions. “Meanwhile, the stock has been able to hold its Put base of 7500, indicating buying support at lower levels. We believe fresh addition in the stock will trigger another round of up move in it,” analysts said.
On the options front, the stock has the highest Call option base at 7800 followed by the 8500 strike and Put open interest base is strengthening at the 7500 and 8000 strikes, which can act as strong support on downsides. The target price implies around 15% upside from current levels. The time frame for the trade is 3 months.
Petronet LNG – Buy
Target – Rs 258 | Stop loss – Rs 203
Petronet LNG Ltd is an oil and gas company formed by the government of India to import liquefied natural gas and set up LNG terminals in the country. The stock has gained a little over 6% since the middle of December last year but its performance remains muted when compared to peers. Analysts at ICICI Direct believe the stock will now play catch up with peers. On the F&O front, analysts noted that leveraged positions in the stock have declined considerably in the last six months as stock prices remained subdued. “Despite sharp closure, the stock has been able to hold its strong support of Rs 205. We believe fresh addition in the stock will trigger a recovery in it,” they added.
Petronet LNG stock saw significant call writing at 230 strike which is the highest Call OI base for the January series.”Currently, the stock is trading near its long term support. As volatility has also contracted in the stock compared to last year, there is a high chance of fresh momentum coming back in the stock,” ICICI Direct said. The stock trades at Rs 225 per share, implying an upside of 14%.