1. Tata Motors Ltd
| Counter | TATAMOTORS LTP 627.2 |
| Call | Buy on dip |
| Target 1 | 660 |
| Target 2 | 700 |
| Stop Loss | 598 |
| Time Horizon | 1-2 months |
| Notes | Buy-on-dip towards 525 & 505 |
Tata Motors Group is a prominent worldwide automotive manufacturer. The company boasts a varied product lineup, encompassing many automobiles such as cars, SUVs, trucks, buses, and defence vehicles. As one of India’s largest OEMs, Tata Motors offers a comprehensive selection of integrated, intelligent, and electric mobility solutions. The company is at the forefront of spearheading India’s Electric Vehicle (EV) transition, championing the movement toward sustainable mobility solutions. It accomplishes this by formulating a customised product strategy, capitalising on the synergies among its group companies, and actively engaging with the government to shape the policy framework.
| Previous Close | 614.9 | TTM EPS | 31.9 |
| 52 Week High | 665.4 | TTM PE | 19.6 |
| 52 Week Low | 375.2 | P/B | 0.7 |
| Sector PE | 52.6 | Mkt Cap (Rs. Cr.) | 208,392 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- The primary trend for this counter continues to be “upward.”
- After consolidating for five weeks, this counter is on the cusp of a potential breakout.
- Maintaining levels above 598 and 580 indicates that both the short-term and mid-term trends are bullish, with the potential to reach 660 and a significant milestone of 700 in the coming months if it continues to trade above 625.
Open Interest Study
| Expiry | CP | Strike | Open Interest |
| 28-Sep-23 | CE | 620 | 3538 |
| 28-Sep-23 | CE | 650 | 3374 |
| 28-Sep-23 | CE | 700 | 3308 |
| 28-Sep-23 | CE | 630 | 3289 |
| 28-Sep-23 | PE | 600 | 3126 |
| 28-Sep-23 | PE | 610 | 2468 |
| 28-Sep-23 | CE | 640 | 2213 |
| 28-Sep-23 | PE | 620 | 1889 |
| 28-Sep-23 | CE | 610 | 1708 |
- According to the September Option Chain analysis, the counter shows the highest Call Option build-up at the 620, 650, and 700 Strikes, suggesting potential resistance levels.
- Conversely, on the lower end, the maximum Put Option build-up is observed at 600, 610, and 620 Strikes, highlighting 620 as a significant “Tug-Of-War” level for the upcoming week.
- It may be worth considering a Covered Bull Ratio Spread strategy, given the prevailing options data and market conditions.
F&O Strategy
| Scrip | TATAMOTORS LTP 627.2 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Holding above 600 – “Range to up” |
| Max Reward Expected | ₹25,000 |
| Max Risk Expected | ₹18,000 |
| Action | Scrip | Quantity | IP | LTP |
| BUY | TATAMOTORS SEP 620 CE | 1425 | 19.85 | 19.85 |
| SELL | TATAMOTORS SEP 650 CE | 1425 | 7.45 | 7.45 |
|
2. Federal Bank Ltd
| Counter | FEDERALBANK LTP 147.5 |
| Call | Buy on dip |
| Target 1 | 155 |
| Target 2 | 160 |
| Stop Loss | 139 |
| Time Horizon | 3-4 Weeks |
| Notes | Buy-On-Dip towards 145 & 140 |
Federal Bank has emerged as the preferred banking partner for a diverse range of customers throughout India, spanning personal, NRI, and business banking needs, regardless of whether in urban or rural areas. The foundation of their exceptional performance is firmly rooted in a decade-long dedication to digital advancements. Their cutting-edge digital capabilities position them as a highly sought-after institution in the neo-banking landscape.
With the introduction of digital products and innovative digital marketing initiatives, the bank strategically positioned itself to leverage new opportunities more effectively, leading to an impressive 86% share of digital transactions. Their commitment to building a secure credit portfolio, prioritizing quality over quantity while maintaining organic and granular liabilities, underscores their dedication to the theme of capital conservation and sustainable growth.
| Previous Close | 145.0 | TTM EPS | 14.5 |
| 52 Week High | 148.3 | TTM PE | 10.1 |
| 52 Week Low | 109.4 | P/B | 1.5 |
| Sector PE | 24.2 | Mkt Cap (Rs. Cr.) | 34,660 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- The counter recently experienced a significant breakout from a twelve-month consolidation period, surpassing the 140-level last month.
- Following this consolidation, the counter concluded at its peak, suggesting the possibility of further gains in the upcoming weeks.
- Investors may consider accumulating this stock at current market rates and on any price dips, as it has the potential to reach levels around 170 in the coming months.
Open Interest
| Expiry | CP | Strike | Open Interest |
| 28-Sep-23 | CE | 150 | 2834 |
| 28-Sep-23 | CE | 145 | 1679 |
| 28-Sep-23 | PE | 145 | 1458 |
| 28-Sep-23 | CE | 160 | 1245 |
| 28-Sep-23 | PE | 130 | 1215 |
| 28-Sep-23 | PE | 140 | 1066 |
| 28-Sep-23 | CE | 155 | 995 |
| 28-Sep-23 | PE | 135 | 684 |
| 28-Sep-23 | CE | 140 | 588 |
- Based on the September Option Chain analysis, the counter exhibits significant resistance at the 150 Strike while maintaining a crucial support level at 145.
- In the short term, the prevailing bias suggests a trading range. However, if the counter manages to sustain levels above 150, it may attract fresh buying interest and trigger short covering, potentially leading to higher levels in the coming weeks.
F&O Strategy
| Scrip | FEDERALBANK LTP 147.5 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Holding above 140 – “Range to up” |
| Max Reward Expected | ₹27,000 |
| Max Risk Expected | ₹17,000 |
| Action | Scrip | QTY | IP | LTP |
| BUY | FEDERALBANK SEP 145 CE | 5000 | 5.30 | 5.30 |
| SELL | FEDERALBANK SEP 154 CE | 5000 | 1.85 | 1.85 |
|
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