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Weekly Picks 20th November 2023

Written by - Fisdom Research

November 18, 2023 7 minutes

1. IRCTC – LTP 707.3

CounterIRCTC LTP 707.3
CallBuy on dip
Target 1770
Target 2825
Stop Loss660 on close
Time Horizon1 & 2 months
NotesBuy-on-dip towards 700 & 675

Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a “Mini Ratna (Category-I)” Central Public Sector Enterprise under Ministry of Railways, Government of India. IRCTC was incorporated on 27th September, 1999 as an extended arm of the Indian Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on trains and other locations and to promote domestic and international tourism through development of budget hotels, special tour packages, information & commercial publicity and global reservation systems.

Previous Close679.7TTM EPS13.3
52 Week High758.0TTM PE53.3
52 Week Low557.1P/B22.8
Sector PE55.9Mkt Cap (Rs. Cr.)56,588

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

  • IRCTC has been experiencing a “Prolonged Consolidation” following a sharp impulsive upmove witnessed between April 2021 and October 2021.
  • The stock is forming a pattern of “Higher Lows & Higher Highs” over the past few months.
  • Immediate support for the stock is anticipated around the 660 levels, with significant mid-term support at 590 levels. Holding above these levels suggests a bias toward a “Range to Up” trend.
  • In the immediate term, the stock seems poised for consolidation, with expectations of testing higher levels at 770 and a major level at 825 in the weeks to come

Open Interest Study

ExpiryCPStrikeOpen Interest
30 Nov 2023CE7001639
30 Nov 2023CE7101374
30 Nov 2023CE7501265
30 Nov 2023CE7201169
30 Nov 2023PE680781
30 Nov 2023PE700739
30 Nov 2023PE650738
30 Nov 2023PE710684
30 Nov 2023PE690658
  • According to the OI Chain of the November series, IRCTC shows the highest CE build-up at 700, 710, and 750 strike rates, indicating an immediate hurdle.
  • Conversely, the maximum PE build-up is observed at 680 and 700 Strike Rates, suggesting a limited downside.
  • The PE build-up quantity is relatively lower compared to the CE build-up, implying that the counter may take time before a fresh upward movement in the coming days.

F&O Strategy

ScripIRCTC LTP 707.3
RiskModerate
Ratio1:1
BiasRange to pullback
Max Reward Expected₹ 28,438
Max Risk Expected₹ 6,563
ActionScripQuantityEntri PriceLTP
BUYIRCTC NOV 720 CE8759.59.5
SELLIRCTC NOV 760 CE87522
Invest Now

2. SBILIFE – LTP 1,414.2

CounterSBILIFE LTP 1,414.2
CallBuy on dip
Target 11480
Target 21540
Stop Loss1320 on close
Time Horizon1+ Month
NotesBuy-On-Dip towards 1400 & 1350

SBI Life Insurance, one of the most trusted life insurance companies in India, was incorporated in October 2000 and is registered with the Insurance Regulatory and Development Authority of India (IRDAI) in March 2001. Serving millions of families across India, SBI Life’s diverse range of products caters to individuals as well as group customers through Protection, Pension, Savings and Health solutions.

Previous Close1359.9TTM EPS18.4
52 Week High1434.5TTM PE78.9
52 Week Low1,054.4P/B10.9
Sector PE18.3Mkt Cap (Rs. Cr.)141,549

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

  • SBILIFE has encountered resistance around the 1350 levels since July 2022. Last week, the stock achieved new “All-Time” highs and initiated a breakout from consolidation.
  • The positional structure of the counter is bullish. Holding above 1320-1300 suggests a “Buy-On-Dip” bias across all three different time frames.
  • The counter may gradually aim for levels around 1480/1540 in the upcoming weeks.
  • The bias for mid-term delivery is “Accumulate.”

Open Interest

ExpiryCPStrikeOpen Interest
30 Nov 2023CE13601436
30 Nov 2023CE14301148
30 Nov 2023CE1450873
30 Nov 2023CE1500823
30 Nov 2023CE1420703
30 Nov 2023CE1400697
30 Nov 2023CE1380611
30 Nov 2023CE1440507
30 Nov 2023PE1350464
  • In the SBILIFE Nov Option Chain, the maximum CE build-up appears at 1360 & 1430 Strikes, while the maximum PE build-up is evident at 1350, 1300, and 1400 PE Strikes.
  • Based on price study & OI chain analysis, the bias indicates a “Range to UP” trend, particularly above 1350 and the lower Strike PE support levels.

F&O Strategy

ScripSBILIFE LTP 1,414.2
RiskModerate
Ratio1:2
BiasRange to pullback
Max Reward Expected₹ 59,400
Max Risk Expected₹ 15,600
ActionScripQTYEntri PriceLTP
BUYSBILIFE NOV 1400 CE75030.530.5
SELLSBILIFE NOV 1500 CE15004.854.85
Invest Now

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