Indian Oil Corporation (IOC) has rallied sharply from 200 Rs to 265 Rs in last two months.Yesterday also, it was up 3.5% to close at 265 Rs.
Open Interest is up 33%. Now looking close at the derivatives data, it can be found that 250 Put and 240 Put saw the maximum addition and that too at higher closing price, despite stock going up (Put indicates weakness in the stock). 250 Put saw new positions of 1.4 Lacs shares and 240 Put saw new positions of 2 Lacs shares.
Trading & Delivery volumes indicate exhaustion as they trade 40% below 1 week average and almost 50% below 1 Month average.
On the charts, we can see long term resistance in 265-275 Rs range which can be ideal level to sell the stock. Keep stop-loss around 281-282 Rs.
Where to book profits? On the short term 5 Day chart, one may see two levels where support may come. One at 258 Rs and another one at 252 Rs. Book profits in between these ranges.
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