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

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

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.

Fisdom Research