Weekly Picks 16th October 2023

1. Tata Motors Ltd

Counter	TATAMOTORS LTP 667.15
Call	Buy on dip
Target 1	770
Target 2	–
Stop Loss	610 on close
Time Horizon	3-4 weeks
Notes	Buy-on-dip towards 645 & 625

Tata Motors Group (Tata Motors) is a USD 42 billion organisation. It is a leading global automobile manufacturing company. Its diverse portfolio includes an extensive range of cars, sports utility vehicles, trucks, buses and defence vehicles. Tata Motors is one of India’s largest OEMs offering an extensive range of integrated, smart and e-mobility solutions.

Previous Close	634.0	TTM EPS	32.0
52 Week High	669.0	TTM PE	20.9
52 Week Low	375.2	P/B	0.8
Sector PE	53.8	Mkt Cap (Rs. Cr.)	221,631

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

Last week, the stock reached its highest weekly closing ever.
It also broke out of a consolidation period that lasted 13 weeks, indicating a positive trend.
The technical indicators show a positive momentum for the stock.
If the counter maintains its value above 600 in the short to mid-term, then “accumulate” with potential to reach at 720 and even 820 levels in the coming months.Top of Form

Open Interest Study

Expiry	CP	Strike	Open Interest
26-Oct-23	CE	700	4497
26-Oct-23	CE	670	2716
26-Oct-23	CE	650	2637
26-Oct-23	CE	680	2553
26-Oct-23	CE	660	2437
26-Oct-23	PE	620	2398
26-Oct-23	PE	650	2365
26-Oct-23	PE	630	2293
26-Oct-23	PE	660	2268

October OI indicates, there’s a strong resistance at the 700 and 670 call option levels. On the other hand, OI is on 650 and 620 put option levels, indicating buy on dips.
In this series, there might be new buying interest if the price drops to 650 or lower.

F&O Strategy

Scrip	TATAMOTORS LTP 667.15
Risk	Moderate
Ratio	1:1
Bias	Range to pullback
Max Reward Expected	₹38,000
Max Risk Expected	₹19,000

Action	Scrip	Quantity	IP	LTP
BUY	TATAMOTORS OCT 660 CE	1425	17.1	17.1
SELL	TATAMOTORS OCT 700 CE	1425	3.75	3.75

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2. Bharat Forge Ltd

Counter	BHARATFORGE LTP 1117.35
Call	Buy on dip
Target 1	1200
Target 2	–
Stop Loss	1000
Time Horizon	3-4 weeks
Notes	Buy-On-Dip towards 1100 & 1050

Bharat Forge manufactures an extensive array of critical and safety components for several sectors including Automobiles (across Commercial & Passenger Vehicle), Oil & Gas, Aerospace, Locomotives, Marine, Energy (across renewable and non-renewable sources), Construction, Mining and General Engineering.

Previous Close	1148.0	TTM EPS	15.1
52 Week High	2745.1	TTM PE	74.1
52 Week Low	1676.0	P/B	7.9
Sector PE	742.1	Mkt Cap (Rs. Cr.)	52,048

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

Technically, the counter is witnessing a “Consolidation” since last six weeks.
The major trend remains “Up” while short to mid-term trend also remains “Range to UP” above 1000 levels.
The counter post consolidation can attempt higher levels in days to come.

Open Interest

Expiry	CP	Strike	Open Interest
26-Oct-23	CE	1200	736
26-Oct-23	CE	1120	525
26-Oct-23	CE	1150	506
26-Oct-23	CE	1100	261
26-Oct-23	PE	1100	248
26-Oct-23	PE	1070	220
26-Oct-23	CE	1160	213
26-Oct-23	CE	1110	201
26-Oct-23	PE	1000	199

October series, maximum call options open interest at 1200 and 1120 levels. Whereas, there’s maximum put options open interest at 1100 and 1070 levels, suggesting indicating support levels.
Buy on dips toward these support levels, remains outlook with strong mid-term hurdle cum target of 1200 levels.

F&O Strategy

Scrip	BHARATFORGE LTP 1117.35
Risk	Moderate
Ratio	1:1
Bias	Range to pullback
Max Reward Expected	₹35,800
Max Risk Expected	₹24,200

Action	Scrip	QTY	IP	LTP
BUY	BHARATFORGE OCT 1100 CE	1000	31.7	31.7
SELL	BHARATFORGE OCT 1160 CE	1000	7.5	7.5

Invest Now

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