Weekly Picks 10th April 2023

1. Reliance Industries Limited

Reliance Industries Limited (RIL) is a Fortune 500 company and the largest private sector corporation in India. RIL is a strongly integrated energy business and has the most expansive digital and retail footprint in the country, RIL is India’s largest corporate value creator and the highest valued company. Major business areas of RIL are – Retail, Oil to Chemicals, Oil & Gas E&P, Digital Services, Media and Entertainment.

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

• Technically, RIL has significant mid to long-term trendline support at around the 2200 level.
• In the last 30 weeks, the counter initially faced resistance at the 2200 levels between Sep-2020 to Aug-2021, but since then, 2200 has become a crucial support level.
• During the last week of Mar-2023, RIL bounced back from the lows of 2180 to the 2354 level.
• The counter can be considered for a ‘Buy-on-dip’ strategy in the coming week, with buying opportunities on dips towards 2300 levels and lower while maintaining a stop loss below 2200 on weekly closing. On the higher end, 2500 and 2600 represent major trending resistance zones in the short term.

Open Interest Study

(Source: Fisdom research)

• The maximum PE for the RIL April series is around 2300 levels, while the maximum CE build-up is at 2400 levels and higher, up to 2500 levels.
• Based on an OI study, long strategies or trading long bets can be considered for the counter on dips towards 2300 levels, depending on one’s risk appetite, with a potential target of 2400 levels as the first target.

F&O Strategy

2. Housing Development Finance Corporation (HDFC) Limited

The Housing Development Finance Corporation (HDFC) Limited is a name that has been associated with the Indian housing sector for the last four decades. As pioneers in housing mortgages, it is a brand name that has been characterised by trust, solidity, both financial and managerial and sound principles. HDFC’s widespread network of interconnected offices across India and outreach programs in several towns and cities, ensures a seamless experience for home buyers and existing customers. To cater to Non-Resident Indians, HDFC has representative offices in London, Dubai and Singapore and service associates in the Middle East.

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

• Last week, HDFC achieved its highest weekly closing since Dec-2021, at the 2729 level.
• The counter is on the verge of a consolidation breakout within the 2500 and 2750 zone, lasting for the last five months.
• The counter faces immediate hurdles at 2800 levels, followed by the next level of 3000.
• If the counter breaks out above 3000 levels, it could escalate even higher in the coming months. The pattern suggests that bulls hold the counter above 2600/2500 support levels in short to mid-term.

Open Interest

(Source: Fisdom research)

• The maximum put build-up for HDFC Ltd.’s April series is at the 2600 levels, followed by 2500 and 2700 levels.
• The maximum call build-up is around 2800 levels, followed by 2700 levels.
• Overall, 2700 is level with the maximum tug-of-war between CE and PE, with a ‘buy-on-support’ outlook.

F&O Strategy

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