PINC posts 'accumulate' on Jet Air futures

MUMBAI: PINC Research has an ‘accumulate’ on Jet Airways for a target price of Rs 1,300 in its F&O recommendation.

Since November expiry, Jet Airways has started witnessing long buildups with cost of carry trading in positive zone. During the month, the stock was subdued due to lack of interest and open interest dropped to mere 3,00,000 shares. This was where the brokerage believes open interest bottomed out.

During May to September, shorts remained adamant and carried their position even as price failed to crack due to lack of selling in the underlying.

Jet Airways started trading in deep discount during this period, showing shorts position. During these expiries, shorts had to pay higher cost to roll their position but making the cost benefit ratio highly unfavourable.

In October, the stock witnessed short covering resulting in drop in rollover percentage from around 80 per cent to just 45 per cent.

Jet Airways is now witnessing renewed interest on the long side and might show good move being an underperformer since last couple of months.

Today, Jet Airways December futures closed at Rs 918.20 on NSE, up 0.20 per cent from Tuesday’s close. Open interest in the contract rose 5.31 per cent to 5,24,000. Cost of carry was 21.83.

In spot the stock closed at Rs 909.55, down 0.13 per cent from previous close with total quantity traded 73,801 shares.