Skip to content

Invest & Trade Smarter with Fisdom App

Get a FREE Fisdom account for Stocks, Mutual Funds & more, all in one place

Download Fisdom app

Weekly Picks 12th June 2023

Written by - Fisdom Research

June 10, 2023 7 minutes

1. NTPC Limited

CounterNTPC LTP 182.70
CallBuy on dip
Target 1192
Target 2207
Stop Loss173 or 170 levels
Time Horizon3-4 weeks
NotesBuy-on-dip towards 180 & 175

NTPC is India’s largest power utility with an installed capacity of 72,304  MW (including JVs), plans to become a 130 GW company by 2032. Established in 1975, NTPC aims to be the world’s largest and best power major.  The company is committed to generating reliable power at competitive prices in a sustainable manner by optimising the use of multiple energy sources with innovative eco-friendly technologies.

Previous Close182.1TTM EPS17.4
52 Week High184.4TTM PE10.5
52 Week Low134.9P/B1.2
Sector PE12.7Mkt Cap (Rs. Cr.)177,255

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

  • NTPC’s stock price has stayed within a range of 160 to 185 since September 2022.
  • Last week, the stock’s weekly closing price went above 183, which is the highest it’s been in the last nine months indicating an up move.
  • If the stock price breaks out of its current range, it could try to reach an immediate target of 192. After that, the next significant goal could be around 207
  • Traders can consider buying on dips towards 180 or lower. Strict stop loss need to be maintained below 173 or even 170 at the end of a week, depending on how much risk they are willing to take. This could help them prepare for potential price increases in the upcoming weeks.

Open Interest Study

(Source: Fisdom research)

  • Based on a study of the open interest option chain, it seems like NTPC has a strong resistance level at around 185 due to a build-up of call options.
  • The stock may initially experience a “pause” or slight profit booking around these levels.
  • If NTPC can maintain a price above 185, there’s a chance of more people buying the stock or covering their short positions, which could push the price even higher
  • Initially take exposure to hedged positions and trade longs as per risk-appetite.

F&O Strategy

ScripNTPC LTP 182.7
RiskModerate
Ratio1:1
BiasPotential break out on cards
Max Reward Expected₹33,630
Max Risk Expected₹23,370
ActionScripQTYIPLTP
BUYJUN NTPC 180 CE57005.75.7
SELLJUN NTPC 190 CE57001.61.6
Invest Now

2. JSW Steel Limited

CounterJSWSTEEL LTP 748.30
CallBuy on dip
Target 1785
Target 2855
Stop Loss700 or 680
Time Horizon4-5 weeks
NotesBuy-On-Dip towards 720 & 700

The flagship company of  JSW Group, JSW Steel is one of India’s leading integrated steel manufacturers with a capacity of 18 MTPA. It is one of the fastest growing companies in India with a footprint in over 100 countries. With state-of-the-art manufacturing facilities located in Karnataka, Tamil Nadu and Maharashtra, it is recognized for its innovation and quality.

Previous Close751.5TTM EPS17.1
52 Week High783.5TTM PE43.7
52 Week Low536.1P/B2.8
Sector PE15.9Mkt Cap (Rs. Cr.)180,928

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

  • Since May 2023, JSWSteel has been seeing profit booking whenever the price gets close to or goes over 740.
  • Last week, the stock ended strong, closing above 740, showing an almost 6% increase.
  • The stock’s overall trend is bullish as it keeps making higher lows and higher highs, suggesting bullish bias.
  • Based on the stock’s current price, it’s at a very important turning point, often referred to as a “Make-Or-Break” point.
  • Based on technical analysis and market indicators, there’s a high chance that the stock’s price might break out to the higher side in the coming weeks. This could potentially see it reaching 855, and then major points of 920 or 1070 over the next few months. As long as the price stays above 680, this upward trend is expected to continue.

Open Interest

(Source: Fisdom research)

  • Based on the study of the June Option Chain and Open Interest Build-up, JSWSTEEL has strong support in the 720-700 range, where most investors are buying put options.
  • On the higher side, the stock has a lot of call option purchases between prices of 750 to 800, suggesting a possible pause cum profit booking when the price moves towards these levels in the next few days.
  • The recommendation is to buy when the price dips above the 720-700 range, with a potential to reach up to 800 initially.

F&O Strategy

ScripJSWSTEEL LTP 748.30
RiskModerate
Ratio1:1
BiasRange to positive
Max Reward Expected₹42,030
Max Risk Expected₹29,970
ActionScripQTYIPLTP
BUYJSWSTEEL JUN 740 CE180024.3524.35
SELLJSWSTEEL JUN 780 CE18007.77.7
Invest Now

Disclaimer: This document is not intended for anyone other than the recipient. The contents of this document may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. If you have received the publication in error please notify the sender immediately. If you are not the named addressee, you should not disseminate, distribute or copy this document. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited. All non-authorised reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings. This document has no contractual value and is not and should not be construed as advice or as an offer or the solicitation of an offer or a recommendation to take action in consonance in any jurisdiction. Finwizard Technology Private Limited (“Fisdom”) makes no guarantee, representation or warranty and accepts no responsibility or liability for the accuracy or completeness of the information and/or opinions contained in this document, including any third party information obtained from sources it believes to be reliable but which has not been independently verified. In no event will Fisdom be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your use of this document or your reliance on or use or inability to use the information contained in this document, even if you advise us of the possibility of such damages, losses or expenses. Fisdom does not undertake any obligation to issue any further publications or update the contents of this document. The information stated and/or opinion(s) expressed herein are expressed solely as general commentary for general information purposes only and do not constitute advice, solicitation or recommendation to act upon thereof. Fisdom does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. The information contained within this document has not been reviewed in the light of your personal circumstances. Please note that this information is neither intended to aid in decision making for legal, financial or other consulting questions, nor should it be the basis of any investment or other decisions. Fisdom may have issued other similar documents that are inconsistent with and reach different conclusion from the information presented in this document. The relevant offering documents should be read for further details. You should make such researches/inspections/inquiries as it deems necessary to arrive at an independent evaluation of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks involved. Fisdom makes no representations that the offerings mentioned in this document are available to persons of any other country or are necessarily suitable for any particular person or appropriate in accordance with their local law. Among other things, this means that the disclosures set forth in this document may not conform to rules of the regulatory bodies of any other country and investment in the offer discussed will not afford the protection offered by the local regulatory regime in any other country. Past performance contained in this document is not a reliable indicator of future performance whilst any forecasts, projections and simulations contained herein should not be relied upon as an indication of future results. The historical performance presented in this document is not indicative of and should not be construed as being indicative of or otherwise used as a proxy for future or specific investments. The relevant product documents should be read for further details. Fisdom does not undertake any obligation to issue any further publications to you or update the contents of this document and such contents are subject to changes at anytime.

Related Articles

Download one of India's best wealth management apps

Join more than one million investors and take control of your wealth

Download app