Weekly Picks 12th June 2023

1. NTPC Limited

Counter	NTPC LTP 182.70
Call	Buy on dip
Target 1	192
Target 2	207
Stop Loss	173 or 170 levels
Time Horizon	3-4 weeks
Notes	Buy-on-dip towards 180 & 175

NTPC is India’s largest power utility with an installed capacity of 72,304  MW (including JVs), plans to become a 130 GW company by 2032. Established in 1975, NTPC aims to be the world’s largest and best power major.  The company is committed to generating reliable power at competitive prices in a sustainable manner by optimising the use of multiple energy sources with innovative eco-friendly technologies.

Previous Close	182.1	TTM EPS	17.4
52 Week High	184.4	TTM PE	10.5
52 Week Low	134.9	P/B	1.2
Sector PE	12.7	Mkt Cap (Rs. Cr.)	177,255

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

• NTPC’s stock price has stayed within a range of 160 to 185 since September 2022.
• Last week, the stock’s weekly closing price went above 183, which is the highest it’s been in the last nine months indicating an up move.
• If the stock price breaks out of its current range, it could try to reach an immediate target of 192. After that, the next significant goal could be around 207
• Traders can consider buying on dips towards 180 or lower. Strict stop loss need to be maintained below 173 or even 170 at the end of a week, depending on how much risk they are willing to take. This could help them prepare for potential price increases in the upcoming weeks.

Open Interest Study

(Source: Fisdom research)

• Based on a study of the open interest option chain, it seems like NTPC has a strong resistance level at around 185 due to a build-up of call options.
• The stock may initially experience a “pause” or slight profit booking around these levels.
• If NTPC can maintain a price above 185, there’s a chance of more people buying the stock or covering their short positions, which could push the price even higher
• Initially take exposure to hedged positions and trade longs as per risk-appetite.

F&O Strategy

Scrip	NTPC LTP 182.7
Risk	Moderate
Ratio	1:1
Bias	Potential break out on cards
Max Reward Expected	₹33,630
Max Risk Expected	₹23,370

Action	Scrip	QTY	IP	LTP
BUY	JUN NTPC 180 CE	5700	5.7	5.7
SELL	JUN NTPC 190 CE	5700	1.6	1.6

Invest Now

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2. JSW Steel Limited

Counter	JSWSTEEL LTP 748.30
Call	Buy on dip
Target 1	785
Target 2	855
Stop Loss	700 or 680
Time Horizon	4-5 weeks
Notes	Buy-On-Dip towards 720 & 700

The flagship company of  JSW Group, JSW Steel is one of India’s leading integrated steel manufacturers with a capacity of 18 MTPA. It is one of the fastest growing companies in India with a footprint in over 100 countries. With state-of-the-art manufacturing facilities located in Karnataka, Tamil Nadu and Maharashtra, it is recognized for its innovation and quality.

Previous Close	751.5	TTM EPS	17.1
52 Week High	783.5	TTM PE	43.7
52 Week Low	536.1	P/B	2.8
Sector PE	15.9	Mkt Cap (Rs. Cr.)	180,928

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

• Since May 2023, JSWSteel has been seeing profit booking whenever the price gets close to or goes over 740.
• Last week, the stock ended strong, closing above 740, showing an almost 6% increase.
• The stock’s overall trend is bullish as it keeps making higher lows and higher highs, suggesting bullish bias.
• Based on the stock’s current price, it’s at a very important turning point, often referred to as a “Make-Or-Break” point.
• Based on technical analysis and market indicators, there’s a high chance that the stock’s price might break out to the higher side in the coming weeks. This could potentially see it reaching 855, and then major points of 920 or 1070 over the next few months. As long as the price stays above 680, this upward trend is expected to continue.

Open Interest

(Source: Fisdom research)

• Based on the study of the June Option Chain and Open Interest Build-up, JSWSTEEL has strong support in the 720-700 range, where most investors are buying put options.
• On the higher side, the stock has a lot of call option purchases between prices of 750 to 800, suggesting a possible pause cum profit booking when the price moves towards these levels in the next few days.
• The recommendation is to buy when the price dips above the 720-700 range, with a potential to reach up to 800 initially.

F&O Strategy

Scrip	JSWSTEEL LTP 748.30
Risk	Moderate
Ratio	1:1
Bias	Range to positive
Max Reward Expected	₹42,030
Max Risk Expected	₹29,970

Action	Scrip	QTY	IP	LTP
BUY	JSWSTEEL JUN 740 CE	1800	24.35	24.35
SELL	JSWSTEEL JUN 780 CE	1800	7.7	7.7

Invest Now

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