HDFC Life 800CE surge by over 500 per cent

The stock of HDFC Life Insurance Company Limited has given a breakout of the downward sloping trendline resistance on the daily chart. This breakout was confirmed by a robust volume.  

The F&O data is also suggesting a long build-up in the stock. On Thursday till 12.30 pm, September series stock futures were seen with 14,63,000 addition of open interest, which is a 7.02 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 2,23,06,900.   

Till 12.30 pm, in September expiry, the total call open interest is 7,873 while the put open interest is 5,008. Hence, the open interest wise put-call ratio (PCR) is at 0.64 for September expiry. Currently, for September series, the highest call open interest is at 800 strikes with 1,058 OI. On the put side, the highest put open interest is at 700 strikes with 934 OI.  

The 800CE of September series has gained over 500 per cent. Today, the 800CE of September has opened at Rs 1.85 and marked a high of Rs 15 level.  

Today till 12.30 pm, the highest addition in the open interest was seen at 800 calls of September expiry with 763 OI. The 780 calls have also seen a significant addition in the open interest. While on the put side, 750 puts have seen the highest addition in the open interest with 407 OI. From 740 to 800, strike calls have witnessed a long build-up. On the put side, the 700 to 770 strikes have seen a short build-up. The current derivative data suggest that Max Pain is at 720 while modified Max pain is at 729 for the monthly expiry.    

Going ahead, the prior all-time high of Rs 746 is likely to act as strong support for the stock. On the upside, the zone of Rs 780-Rs 800 may act as crucial resistance for the stock.