ITC 230CE surge over 800 per cent

The stock of ITC Limited has given a downward sloping trendline breakout on the daily chart, formed by connecting swing highs from June 2021. This breakout was confirmed by robust volume. Interestingly, the leading indicator i.e. the 14-period daily RSI has also given a downward sloping trendline breakout.  

The F&O data is also suggesting a long build-up in the stock. On Thursday till 10.35 am, September series stock futures were seen with 1,51,55,200 additions of open interest, which is a 9.49 per cent addition in the open interest. It indicates that there is a long build-up in the stock. September month’s current open interest is 17,47,93,600.   

Till 10.40 am in September expiry, the total call open interest is 45,388 while the put open interest is 22,653. Hence, the open interest wise put-call ratio (PCR) is at 0.50 for September expiry. Currently, for September series, the highest call open interest is at 230 strikes with 6,803 OI. In the money, 220CE and 215CE are also having significant open interest. On the put side, the highest put open interest is at 215 strikes with 4,408 OI.      

Today till 10.40 am, the highest addition in the open interest was seen at 230 calls of September expiry with 3,836 OI. The 240 calls have also seen a significant addition in the open interest. While on the put side, 215 puts have seen the highest addition in the open interest with 2,892 OI. From 227.50 to 277.50, strike calls have witnessed a long build-up. From 225 to 200, strike calls have witnessed a short covering. On the put side, the 235 to 207.50 strikes have seen a short build-up. The current derivative data suggest that Max Pain is at 215 while modified Max pain is at 219 for the monthly expiry.  

The 230CE of September series has gained over 800 per cent. Today, the 230CE of September has opened at Rs 0.90 and marked a high of Rs 11 level.    

Going ahead, the prior swing high of Rs 239.20 is likely to act as crucial resistance for the stock. While on the downside, the zone of Rs 219.40-220.60 will act as support for the stock.