Weekly Picks 06th November 2023

1. State Bank of India

Counter	SBIN LTP 578.1
Call	Buy on dip
Target 1	600
Target 2	620
Stop Loss	545 on close
Time Horizon	4-5 weeks
Notes	Buy-on-dip towards 572 & 560

State Bank of India (SBI) is a Mumbai-based Indian multinational public sector bank and financial services institution. It offers an extensive array of products and services to individuals, businesses, large corporations, public entities, and institutional clients through its widespread network of branches, outlets, joint ventures, subsidiaries, and associate firms. SBI has consistently demonstrated its commitment to adapt to evolving landscapes while upholding core values like Service, Transparency, Ethics, Politeness, and Sustainability

Previous Close	572.1	TTM EPS	74.9
52 Week High	629.5	TTM PE	7.7
52 Week Low	499.3	P/B	1.5
Sector PE	11.2	Mkt Cap (Rs. Cr.)	515,976

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

• In the SBIN November Option Chain, there is a prominent concentration of Call options with the highest open interest (OI) at the 600 and 580 strike levels. Correspondingly, there is significant Put options OI at the 550 and 565 strike levels.
• Analysing the Open Interest (OI) chain, it suggests that the expected immediate trading range for SBIN lies within the levels of 565 and 600.

Open Interest Study

Expiry	CP	Strike	Open Interest
30 Nov 2023	CE	600	8,568
30 Nov 2023	CE	580	4,505
30 Nov 2023	CE	575	3,677
30 Nov 2023	PE	550	2,803
30 Nov 2023	CE	590	2,440
30 Nov 2023	CE	620	2,292
30 Nov 2023	PE	565	2,136
30 Nov 2023	PE	580	2,023
30 Nov 2023	PE	560	2,008

• SBIN witnessed a breakout above the 500 level in August 2022, reaching highs of around 615.
• Subsequently, the stock formed a “Double Top” pattern around the 620 levels and retraced to approximately 540.
• Currently, the stock offers an attractive risk-reward ratio for initiating new long positions with potential targets at 620 and 650 in the coming weeks.
• In the short term, crucial support is seen around 540, while the broader support levels for the stock are at 500 and 480. Maintaining a bullish stance remains favorable, with a “Buy-On-Dip” strategy for the mentioned higher price targets in the weeks ahead.

F&O Strategy

Scrip	SBIN LTP 578.1
Risk	Moderate
Ratio	1:2
Bias	Range to pullback
Max Reward Expected	₹34,000
Max Risk Expected	₹18,000

Action	Scrip	Quantity	IP	LTP
BUY	SBIN NOV 575 CE	1500	17.7	17.7
SELL	SBIN NOV 610 CE	3000	2.9	2.9

Invest Now

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2. United Spirits Limited

Counter	MCDOWELL-N LTP 1071.2
Call	Buy on dip
Target 1	1100
Target 2	1150
Stop Loss	1000 on close
Time Horizon	4-5 weeks
Notes	Buy-On-Dip towards 1050 & 1020

United Spirits Limited is a prominent beverage alcohol company in India, operating as a subsidiary of the global leader, Diageo plc. The company is renowned for producing, selling, and distributing a remarkable portfolio of iconic international and premium Indian brands. With a strong commitment to its purpose, United Spirits is attuned to the requirements of its consumers, the community, and the environment. It takes pride in its responsible approach to producing and marketing beverage alcohol, advocating responsible consumption through its ‘drink better, not more’ narrative.

Previous Close	1057.2	TTM EPS	18.5
52 Week High	1098.0	TTM PE	57.8
52 Week Low	730.5	P/B	12.9
Sector PE	69.8	Mkt Cap (Rs. Cr.)	77,913

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

• McDowell-N has experienced a consolidation phase within the range of 1070 and 970 since the last week of July 2023.
• During the past week, the stock concluded at its peak, forming a candlestick pattern resembling a “Bullish Engulfing,” in comparison to the previous week.
• Looking ahead, it may be advisable to consider purchasing the stock on declines towards 1050 and averaging down at approximately 1020 with the potential for higher levels around 1150 and beyond.

Open Interest

Expiry	CP	Strike	Open Interest
30 Nov 2023	CE	1100	645
30 Nov 2023	PE	1000	394
30 Nov 2023	PE	1050	321
30 Nov 2023	CE	1050	299
30 Nov 2023	CE	1080	282
30 Nov 2023	CE	1200	237
30 Nov 2023	CE	1150	155
30 Nov 2023	PE	1020	141
30 Nov 2023	PE	900	136

• The McDowell-N Nov Option Chain reveals a significant Call (CE) build-up at the 1100 Strike, with substantial Put (PE) build-up at the 1000 Strike.
• Analyzing the Open Interest (OI) chain suggests a “Buy-On-Dip” strategy above 1000 levels, with a potential obstacle or pause around 1100, followed by the possibility of higher levels in the upcoming weeks.

F&O Strategy

Scrip	MCDOWELL-N LTP 1071.2
Risk	Moderate
Ratio	1:1
Bias	Range to pullback
Max Reward Expected	₹18,000
Max Risk Expected	₹16,000

Action	Scrip	QTY	IP	LTP
BUY	MCDOWELL-N NOV 1050 CE	700	38.75	38.75
SELL	MCDOWELL-N NOV 1100 CE	700	15.3	15.3

Invest Now

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