1. Voltas Ltd.
| Counter | VOLTAS LTP 857 |
| Call | Buy on dip |
| Target 1 | 900 |
| Target 2 | 940 |
| Stop Loss | 790 |
| Time Horizon | 2-3 weeks |
| Notes | Buy-on-dip towards 840 & 800 |
Voltas is the undisputed market leader in the Room Air Conditioner category for more than a decade, consistently maintaining the No. 1 position, and has steadily maintained its lead over the competition. Founded in 1954, the company is also globally recognised as an engineering solutions provider and a project specialist. It enjoys a strong presence across India, the Middle East, South East Asia, and Africa.
| Previous Close | 867.5 | TTM EPS | 5.2 |
| 52 Week High | 1347.6 | TTM PE | 163.2 |
| 52 Week Low | 737.2 | P/B | 5.1 |
| Sector PE | 63.8 | Mkt Cap (Rs. Cr.) | 28,355 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom research)
- Voltas concluded the week at 856 levels, having formed a “Bullish Weekly” candlestick on the charts.
- Consider initiating fresh “Hedged Long” positions on the counter when it dips towards 840 levels, with the next crucial support at 800 levels. It is suggested to maintain strict stop-losses.
- Strong resistance is expected for the counter if it tries to pull back towards 900 and levels exceeding 950 in the upcoming days.
Open Interest Study
(Source: Fisdom research)
- The open interest (OI) data for Voltas shows a mixed build-up of put options (PE) and call options (CE) between the levels of 820 and 900.
- Strong resistance around 900 levels is implied by the elevated CE build-up for Strike Prices at the higher-end, thus limiting any potential upward movement.
- The counter may consolidate within the range of 800 and 900 levels, making it suitable for hedged long strategies.
F&O Strategy
| Scrip | VOLTAS LTP 857 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to pull back |
| Max Reward Expected | ₹32,760 |
| Max Risk Expected | ₹ 9,240 |
| Action | Scrip | QTY | IP | LTP |
| BUY | 25-MAY VOLTAS 850 CE | 600 | 37.2 | 37.2 |
| SELL | 25-MAY VOLTAS 920 CE | 1200 | 10.9 | 10.9 |
|
2. Hindustan Unilever Ltd
| Counter | HUL LTP 2498 |
| Call | Buy on dip |
| Target 1 | 2560 |
| Target 2 | 2620 |
| Stop Loss | 2380 |
| Time Horizon | 2-3 weeks |
| Notes | Buy-On-Dip towards 2480 & 2420 |
With 50+ brands spanning categories such as fabric solutions, home and hygiene, life essentials, skin cleansing, skincare, hair care, colour cosmetics, oral care, deodorants, tea, coffee, ice cream & frozen desserts, foods and health food drinks, the Company is a part of the everyday life of millions of consumers across India. HUL is a subsidiary of Unilever, one of the world’s leading suppliers of Food, Home Care, Personal Care and Refreshment products with sales in over 190 countries.
| Previous Close | 2492.6 | TTM EPS | 41.8 |
| 52 Week High | 2741.8 | TTM PE | 59.8 |
| 52 Week Low | 2047.0 | P/B | 12.0 |
| Sector PE | 60.9 | Mkt Cap (Rs. Cr.) | 586,916 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom research)
- Last week, the counter retraced from its peak at 2591 and ended the week at 2500 levels.
- According to the price study, the counter has a crucial support level in the range of 2450-2400. From a technical perspective, if the counter maintains above the 2450-2400 levels, the bias will remain “range to up”, with hurdles at 2600 and major resistance at approximately 2750 levels.
- Those looking for contra trading longs can consider entering the market when the counter dips towards its support levels.
Open Interest
(Source: Fisdom research)
- According to the May-2023 open Interest data, the maximum Put build-up is at approximately 2500 levels, while on the higher end, the build-up is seen at around the 2600 and 2700 strike rates
- Although the Roll-Over next week will enhance the data and indicators, the preliminary bias is for immediate initial decent support at around 2500 levels, followed by major support at 2400 as per price study and OI.
F&O Strategy
| Scrip | HUL LTP 2498 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to pull back |
| Max Reward Expected | ₹40,600 |
| Max Risk Expected | ₹29,400 |
| Action | Scrip | QTY | IP | LTP |
| BUY | 25-MAY HINDUNILVR 2500 CE | 700 | 70 | 70 |
| SELL | 25-MAY HINDUNILVR 2600 CE | 700 | 28 | 28 |
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