Weekly Picks 04th March 2024

1. RELIANCE LTP 2980.85

Counter	RELIANCE LTP 2980.85
Call	Buy on dip
Target 1	3080
Target 2	3130
Stop Loss	Below 2840 on close
Time Horizon	2-3 weeks
Notes	Buy on dip at 2940 & Avg around 2880

Reliance is among the first companies globally to adopt an Oil-to-Chemicals (O2C) strategy to produce the chemical building blocks of a circular economy and integrate it with sustainable downstream derivatives, useful chemicals, and new materials. Reliance is now one of the largest Oil & Gas Exploration and Production players in India with a balanced domestic conventional and unconventional hydrocarbons portfolio.

Previous Close	2984.25	TTM EPS	103.41
52 Week High	3000.90	TTM PE	28.84
52 Week Low	2180.0	P/B	2.46
Sector PE	39.09	Mkt Cap (Rs. Cr.)	20,17,691

^{(Source: Moneycontrol, BSE, Fisdom Research)}

Technical Outlook

^{(Source: Fisdom research)}

Reliance has witnessed an up-move of over +15% in the current year 2024 as of now. Post the sharp up-move witnessed earlier the counter has entered into a consolidation phase. For the last four weeks, the counter has been within a range between 2850 & 3000 zones.

The counter has an immediate minor hurdle at around 3000 followed by higher positional targets of 3100 & higher 3200-3240 zone on the short to mid-term time-frame.
As per the short-term outlook bias can be “Buy-On-Dip” towards 2940 & lower 2880 levels for potential higher 3100 & higher thereafter maintaining a stop below 2840 or 2800 levels on a closing basis.

Option Chain Study

Derivative Option Chain data indicates “Tug-Of-War” at around 3000 Strike rates where the “Supply” is still intact. Once RIL holds above 3000 levels can witness fresh buying cum short-covering.
Maximum CE build-up is at 3000 & 3100 Strikes while maximum PE build-up is at 2900 & 2800 Strikes. Dips towards 2940 & 2880 odd can provide fresh better risk-reward ratio for fresh trading long bets. Overall, look for hedged long strategies unless the counter witnesses short-covering in days to come.

F&O Strategy

Scrip	RELIANCE LTP 2980.85
Risk	Moderate
Ratio	1:1
Bias	Range to positive bias
Max Reward Expected	~Rs. 15,375
Max Risk Expected	~Rs. 9,625

Action	Scrip	Quantity	Entry Price	LTP
BUY	RELIANCE MAR 3000 CE	250	72.5	72.5
SELL	RELIANCE MAR 3100 CE	250	34	34

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2. HINDCOPPER LTP 281.5

Counter	HINDCOPPER 281.5
Call	Buy on dip
Target 1	305
Target 2	320
Stop Loss	Below 250 on close
Time Horizon	2-3 weeks
Notes	Buy on dip at 278 & average around 264

Hindustan Copper Limited (HCL), a Miniratna Category-I, Government of India (GoI) Enterprise under the administrative control of the Ministry of Mines, was incorporated on 9th November 1967. he Company has the facilities for production & marketing of copper concentrate, copper cathodes, continuous cast copper rod and by-products, such as anode slime (containing gold, silver, etc.), copper sulphate and sulphuric acid. Presently, company is focusing on mining & beneficiation operation and is primarily selling copper concentrate as the main product. In the concluded financial year 2022-23, the Company has earned a net profit (PAT) of Rs 295.31 crore against a sales turnover of Rs 1660.63 crore. HCL’s mines and plants are spread across five operating Units, one each in the States of Rajasthan, Madhya Pradesh, Jharkhand, Maharashtra and Gujarat.

Previous Close	272.10	TTM EPS	3.14
52 Week High	306.9	TTM PE	89.68
52 Week Low	93.9	P/B	13.1
Sector PE	87.69	Mkt Cap (Rs. Cr.)	27,231

_{(Source: Moneycontrol, BSE, Fisdom Research)}

Technical Outlook

^{(Source: Fisdom research)}

Hindcopper has witnessed an up-move of 4% in the current year 2024 while +8.21% this week. Post sharp up-move the counter has entered into a consolidation phase. Since the last nine weeks, the counter has been within a range between 240 & 300 zones.

The counter has an immediate minor hurdle at around 300 followed by higher positional targets of 305/ 320 & higher 360 levels in the short to mid-term time frame.

As per short-term outlook bias can be “Buy-On-Dip” towards 278 & lower 264 levels for potential higher 305 & higher 320+ thereafter maintaining stop below 260 or 240 levels on closing basis as per risk-appetite & time-frame of trade.

Option Chain Study

Derivative Option Chain data indicates “Tug-Of-War” at around 300 Strike rates where the “Supply” is still intact. Once Hindcopper holds above 300 levels can witness fresh buying cum short-covering.
Maximum CE build-up is at 300 & 280 Strikes while maximum PE build-up is at 260 & 250 Strikes. Dips towards 260 & 240 odd can provide a fresh better risk-reward ratio for positional fresh long bets.
Overall, look for hedged long strategies unless the counter witnesses short-covering in days to come.

F&O Strategy

Scrip	HINDCOPPER 281.5
Risk	Moderate
Ratio	1:1
Bias	Range to pullback
Max Reward Expected	~Rs. 62,010
Max Risk Expected	~Rs. 44,000

Action	Scrip	QTY	Entry Price	LTP
BUY	HINDCOPPER FEB 280 CE	5300	17.6	17.6
SELL	HINDCOPPER FEB 300 CE	5300	9.3	9.3

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