5 mid-cap stocks to watch out for in derivatives

Traders in the derivatives market are betting on select mid-cap stocks for the May series such as M&M Financial, Biocon, Bata India, Titan Company and Havells India. These stocks have seen significant surge in both open interest and stock prices in April series, which suggest long positions are being constructed in these counters. Total outstanding futures positions in these stocks have jumped up to 65 per cent over past one month, while stock prices have surged up to 22 per cent.

M&M Financial

April Futures Price Rs 303 Total Open Interest (OI) 1,66,22,000 1 Month OI Change 47 per cent Gain in April Series 22 per cent

The stock witnessed significant build-up of futures positions. Traders are betting on good monsoon and the turnaround in rural economy.

ACTIVE CALL OPTION STRIKE Rs 300, 310, 320 ACTIVE PUT OPTION STRIKE Rs 280, 290

Titan Company

April Futures Price Rs 371 Total Open Interest (OI) 67,47,000 1 Month OI Change 41 per cent Gain in April Series 10 per cent

Analysts see strong growth potential this fiscal due to lower earnings base and resumption of its successful gold instalment plan.

ACTIVE CALL OPTION STRIKE Rs 380, 390, 400 ACTIVE PUT OPTION STRIKE Rs 360, 370

Bata India

April Futures Price Rs 566 Total Open Interest (OI) 19,41,000 1 Month OI Change 45 per cent Gain in April Series 11 per cent

The restructuring story in Bata India is making traders bullish about the stock. Analysts expect higher growth and profitability going ahead as the company has rationalised prices for its products to aid volume growth.

ACTIVE CALL OPTION STRIKE Rs 560, 570 ACTIVE PUT OPTION STRIKE Rs 550, 560

Biocon

April Futures Price Rs 565 Total Open Interest (OI) 32,15,300 1 Month OI Change 24 per cent Gain in April Series 14 per cent

Traders are betting on value unlocking in global biosimilar pipeline and steadily growing business.

ACTIVE CALL OPTION STRIKE Rs 570, 580, 600 ACTIVE PUT OPTION STRIKE Rs 550, 560

Havells India

April Futures Price Rs 346 Total Open Interest (OI) 41,84,000 1 Month OI Change 65 per cent Gain in April Series 9.5 per cent

The company is strengthening its position in the electrical goods space and has been growing higher than industry average.

ACTIVE CALL OPTION STRIKE Rs 350, 360 ACTIVE PUT OPTION STRIKE Rs 330, 340