Categories: Weekly Pick

Weekly Picks 05th February 2024

1. JINDALSTEL LTP 776.10

CounterJINDALSTEL LTP 776.10
CallBuy on dip
Target 1815
Target 2860
Stop LossBelow 740
Time Horizon2-3 weeks
Notes

Jindal Steel & Power (JSP) is an Indian industrial powerhouse with a dominant presence in the steel, mining, and infrastructure sectors. The company produces best-in-class, cost-effective steel through backward and forward integration. It is undertaking ambitious expansion plans and is known as one of the most efficient & innovative steel-makers in the world.

Previous Close801.70TTM EPS45.71
52 Week High895.75TTM PE18.02
52 Week Low649.05P/B2.91
Sector PE19.37Mkt Cap (Rs. Cr.)201,395
(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

  • Last week, the counter gave a fresh “All Time High” weekly closing at 776, up 8.33%. The counter is expected to witness fresh buying on dips in weeks to come.
  • Technically, the Index holds a “Buy-On-Dip” outlook on all different time-frames. Trading above immediate crucial support levels of 740 & major 708, the potential higher targets of 815 & extended 860 levels in weeks to come.
  • For the years 2024 and ahead, the counter can attempt to reach its positional target of 1000 levels or more, with major positional support at around 690 and 640 levels.

Option Chain Study

  • As per Feb Option Chain data, the counter has maximum CE build-up at 760 & 800 Strike Rates, which indicates the counter can witness profit-taking & contra trading bets against up-move.
  • While on the lower end, the maximum PE build-up is around 750 & 700 Strike rates. Overall, the counter can be within a consolidation between the 750 & 800 range with “Buy-On-Dip & Sell-On-Rise” as per OI data witnessed till last week.

F&O Strategy

ScripJINDALSTEL LTP 776.10
RiskModerate
Ratio1:1
BiasRange to positive bias
Max Reward Expected~Rs. 26,875
Max Risk Expected~Rs. 23,125
ActionScripQuantityEntry PriceLTP
BUYJINDALSTEEL FEB 760 CE125037.537.5
SELLJINDALSTEEL FEB 800 CE12501919
Invest Now

2. ABCAPITAL LTP 180.2

CounterABCAPITAL 180.2
CallBuy on dip
Target 1192
Target 2204
Stop LossBelow 170
Time Horizon2-3 weeks
Notes

Aditya Birla Capital Limited (“ABCL”) is the holding company for the financial services businesses of the Aditya Birla Group. With subsidiaries/JVs that have a strong presence across Protecting, Investing and Financing solutions, ABCL is a financial solutions group that caters to the diverse needs of its customers across their life cycle. Powered by about 42,000 employees, the businesses of ABCL have a nationwide reach with over 1,403 branches, more than 2,00,000 agents / channel partners and several bank partners. As of September 30, 2023, Aditya Birla Capital Limited manages aggregate assets under management of over Rs. 4 lakh Crore with a consolidated lending book of about Rs 1.09 lakh Crore through its subsidiaries and joint ventures.

Previous Close166.9TTM EPS20.13
52 Week High199.3TTM PE8.96
52 Week Low133.7P/B2.87
Sector PE31.13Mkt Cap (Rs. Cr.)46,885

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

 (Source: Fisdom research)

  • Last week, the counter formed a weekly “Bullish Candle” & ended up 8.81% at 180 levels.
  • Technically, the Index holds a “Buy-On-Dip” outlook on all different timeframes. Trading above immediate crucial support levels of 174 and major 162, the potential higher targets of 192 and extended 204 levels in the next few weeks.
  • For the years 2024 and ahead, the counter can attempt to reach its positional target of 200 and higher extended 240 levels, with major positional support at around 160 and 140 levels.

Option Chain Study

  • As per Feb Option Chain data, the counter has maximum CE build-up at 200 & 180 Strike Rates, which indicates the counter can witness profit-taking & contra trading bets against up-move. While on the lower end, the maximum PE build-up is at around 170 & 180 Strike rates.
  • Overall, the counter can be within a consolidation with upside capped sub 200 levels & “Tug-Of-War” 180 levels in the next couple of weeks. Thus, the broad data indicates “Range” with “Buy-On-Dip & Sell-On-Rise” at around the mentioned supports & resistances with strict stops.

F&O Strategy

ScripABCAPITAL 180.2
RiskModerate
Ratio1:1
BiasRange to positive
Max Reward Expected~Rs. 79,650
Max Risk Expected~Rs. 28,350
ActionScripQTYEntry PriceLTP
BUYABCAPITAL FEB 180 CE54006.656.65
SELLABCAPITAL FEB 200 CE54001.41.4
Invest Now

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