Weekly Picks 11th March 2024

1. INDUSINDBK FUT LTP 1567

Counter	INDUSINDBK FUT LTP 1567
Call	Buy on dip
Target 1	1625
Target 2	1740
Stop Loss	Below 1440
Time Horizon	2-3 weeks
Notes	Buy on dip around 1525 Avg 1480

IndusInd Bank Ltd functions as a comprehensive banking group in India, offering a range of services such as consumer banking, credit cards, consumer finance, corporate banking, commercial banking, global markets, transaction banking, priority sector lending, risk management, and financial restructuring and reconstruction. The bank operates within four distinct business segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. A significant portion of its revenue is derived from the Retail Banking segment. The bank places strategic emphasis on maintaining its high-street brand and has implemented various initiatives to enhance brand visibility through digital marketing and increased utilization of financial technology. The majority of its loan portfolio consists of term loans with exposure exclusively in India.

Previous Close	1554.55	TTM EPS	111.42
52 Week High	1694.50	TTM PE	14.03
52 Week Low	990.20	P/B	2.81
Sector PE	24.43	Mkt Cap (Rs. Cr.)	1,21,704

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

Technical Outlook

^{(Source: Fisdom research)}

Indusindbk gained +31% last year & thereafter witnessed retracement cum consolidation in last two plus months. The counter retraced back almost -12% from last year highs of 1626 to lows of 1428 in Jan-24. The counter thereafter entered into consolidation & witnessed a pull-back to now down -2.66% this year.
The counter has immediate minor hurdle at around 1625 followed by higher positional targets of 1772 & major 1940-2000 zone for this year. While major support for the counter on lower-end is around 1420 & lower 1275 supports with “Buy-On-Dip” outlook.

As per short-term outlook bias can be “Buy-On-Dip” towards 1525 & lower 1480 levels for potential higher 1625 & higher thereafter maintaining stop below 1440 or 1400 levels on closing basis.

Option Chain Study

Derivative Option Chain data indicates “Tug-Of-War” at around 1600 Strike rates where the “Supply” is still intact. Once Indusindbk holds above 1600-1630 zone can witness fresh buying cum short-covering.
Maximum CE build-up is at 1600 & 1560 Strikes while maximum PE build-up is at 1600 & 1500 Strikes. Dips towards 1500 & lower can provide fresh better risk-reward ratio for fresh trading long bets.
Overall, look for hedged long strategies unless the counter witness short-covering in days to come.

F&O Strategy

Scrip	INDUSINDBK FUT LTP 1567
Risk	Moderate
Ratio	1:1
Bias	Range to positive above 1500 levels
Max Reward Expected	~Rs. 15,400 above 1600 levels
Max Risk Expected	~Rs. 14,500 below 1540 levels

Action	Scrip	Quantity	Entry Price	LTP
BUY	INDUSINDBK MAR 1540 CE	500	48.65	48.65
SELL	INDUSINDBK MAR 1600 CE	500	19.5	19.5

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2. TRENT FUT LTP 3973

Counter	TRENT FUT LTP 3973
Call	Buy on dip
Target 1	4300
Target 2	4650
Stop Loss	Below 3700
Time Horizon	2-3 weeks
Notes	Buy on dip around 3820 avg 3650

Trent Ltd, along with its subsidiaries, manages a network of retail outlets. These stores showcase an array of brands spanning women’s wear, men’s wear, children’s wear, footwear, lingerie, cosmetics, perfumes, handbags, and accessories. Additionally, Trent Ltd provides a diverse range of products including food items, beverages, health and beauty products, fresh produce such as vegetables and fruits, dairy products, and more.

Previous Close	3872	TTM EPS	23.54
52 Week High	4099.80	TTM PE	167.89
52 Week Low	1276.40	P/B	58.30
Sector PE	135.11	Mkt Cap (Rs. Cr.)	1,40,495

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

Technical Outlook

^{(Source: Fisdom research)}

Trent gained +1.27 times last year (1356> 3082) & even in the year 2024 the momentum is still ON. The counter is up around 29% this year. The counter is witnessing a consolidation phase since last four weeks within a range between 3700 & 4100 since Feb-24.

The counter has immediate minor hurdle at around 4200/4350 followed by higher positional targets of 4800 & major 5000-5200 zone for this year. While major support for the counter on lower-end is around 3650 & lower 2850 supports with “Buy-On-Dip” outlook.

As per short-term outlook bias can be “Buy-On-Dip” towards 3800 & lower 3650 levels for potential higher 4300 & higher thereafter maintaining stop below 3600 or 3500 levels on closing basis.

Option Chain Study

Derivative Option Chain data indicates “Tug-Of-War” at around 4000 Strike rates where the “Supply” is still intact. Once Trent holds above 4300-50 zone than only one can witness fresh buying cum short-covering.
Maximum CE build-up is at 4000 & 4520 Strikes while maximum PE build-up is at 3800 & 3500 Strikes. Dips towards 3800 & lower can provide fresh better risk-reward ratio for fresh trading long bets.
Overall, look for hedged long strategies unless the counter witness short-covering in days to come.

F&O Strategy

Scrip	TRENT FUT LTP 3973
Risk	Moderate
Ratio	1:1
Bias	Range to positive above 380 levels
Max Reward Expected	~Rs. 75,000 above 4200 levels
Max Risk Expected	~Rs. 44,000 below 3900 levels

Action	Scrip	QTY	Entry Price	LTP
BUY	TRENT MAR 3900 CE	400	170	170
SELL	TRENT MAR 4200 CE	400	57.7	57.7

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