1. IDFC First Bank Ltd
| Counter | IDFCBANK LTP 65.54 |
| Call | Buy on dip |
| Target 1 | 70 |
| Target 2 | 80 |
| Stop Loss | 60 |
| Time Horizon | 2-3 weeks |
| Notes | Buy-on-dip towards 65 & 62 |
IDFC FIRST Bank was founded by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018. IDFC FIRST Bank is born to be distinctly different from what it was earlier. It has a renewed focus on retail business with an intent to fast-forward its growth trajectory, and to serve many more customer segments that are growth-drivers of the Indian economy.
| Previous Close | 64.8 | TTM EPS | 3.7 |
| 52 Week High | 65.8 | TTM PE | 17.5 |
| 52 Week Low | 29.0 | P/B | 2.1 |
| Sector PE | 22.2 | Mkt Cap (Rs. Cr.) | 43,388 |
(Source: Moneycontrol, BSE, Fisdom Research)
(Source: Fisdom research)
- In the past six months, the stock price has consistently found strong support around the range of 54-55. Recently, it has shown a breakout from a period of consolidation, surpassing the levels of 60 and 65 last week.
- It is a good opportunity to consider buying the stock at its current levels, as well as on any price declines. The stock has immediate support around the 60-58 range.
- Looking ahead, the stock has a potential target of 70 in the near term, and if it continues to perform well, it could even reach the higher level of 80 in the coming weeks.
Open Interest Study
(Source: Fisdom research)
- Looking at the Open Interest data for the month of May, we can see that the stock has the highest number of open contracts at the 60 strike price. This suggests that there is strong support for the stock at this level.
- When we look at the Call Options, we can see that the highest number of contracts are at strike prices 65 and 70. These levels can act as resistance for the stock.
- The outlook for the stock suggests that it is favorable to buy the stock when its price dips towards the 60 level.
F&O Strategy
| Scrip | IDFCBANK LTP 65.54 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to pull back |
| Max Reward Expected | ₹54,750 |
| Max Risk Expected | ₹20,250 |
| Action | Scrip | QTY | IP | LTP |
| BUY | MAY IDFCFIRSTBK 65 CE | 15000 | 1.75 | 1.75 |
| SELL | MAY IDFCFIRSTBK 70 CE | 15000 | 0.4 | 0.4 |
|
2. Axis Bank Ltd
| Counter | AXISBANK LTP 911 |
| Call | Buy on dip |
| Target 1 | 975 |
| Target 2 | 1050 |
| Stop Loss | 860 |
| Time Horizon | 2-3 weeks |
| Notes | Buy-On-Dip towards 900 & 870 |
Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. The Bank has a large footprint of 4,903 domestic branches (including extension counters) with 15,953 ATMs & cash recyclers spread across the country as on 31st March 2023.
| Previous Close | 896.0 | TTM EPS | 35.1 |
| 52 Week High | 970.0 | TTM PE | 25.9 |
| 52 Week Low | 618.2 | P/B | 2.4 |
| Sector PE | 22.2 | Mkt Cap (Rs. Cr.) | 280,331 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom research)
- The stock recently broke out of a period of consolidation that lasted for the past three months, and it closed at its highest-level last week.
- From a technical perspective, the stock’s primary trend is considered to be in an upward direction as long as it remains above the levels of 850 and 800.
- Looking ahead, there is a possibility that the stock may gradually move towards the levels of 975, and its next significant target would be around 1050.
- Outlook for the counter is to keep buying the stock when its price dips towards the levels of 900 and 870.
Open Interest
(Source: Fisdom research)
- According to the Option Chain study, the stock has significant support levels when its price falls.
- In the May series, there is a high concentration of Put options at strike prices like 870, 880, 900, and 910. This suggests that the stock is expected to have a positive outlook within a certain range.
- On the other hand, there is a considerable concentration of Call options at strike prices like 900, 910, and 920. This indicates that there is potential for the stock to move higher.
- Overall, the stock is expected to have a positive outlook within a certain range in the short to medium term.
F&O Strategy
| Scrip | AXISBANK LTP 911 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to pull back |
| Max Reward Expected | ₹29,160 |
| Max Risk Expected | ₹18,840 |
| Action | Scrip | QTY | IP | LTP |
| BUY | MAY AXIBANK 900 PE | 1200 | 19.25 | 19.25 |
| SELL | MAY AXIBANK 940 PE | 1200 | 3.55 | 3.55 |
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