Categories: Weekly Pick

Weekly Picks 19th February 2024

1. ADANIPORTS LTP 1306.95

CounterADANIPORTS LTP 1306.95
CallBuy on dip
Target 11360
Target 21400
Stop LossBelow 1230
Time Horizon2-3 weeks
NotesBuy on dip around 1285 Avg. 1255

Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across 13 domestic ports in seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha presents the most widespread national footprint with deepened hinterland connectivity.

Previous Close1267.0TTM EPS33.47
52 Week High1311.00TTM PE39.05
52 Week Low533.65P/B6.22
Sector PE98.81Mkt Cap (Rs. Cr.)282,297
(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

  • The counter witnessed the last ten sessions’ consolidation break-out above 1300 levels & ended weekly “Fresh All Time” highs of 1306 last week.
  • The counter has an immediate minor hurdle at around 1360 levels followed by higher positional targets of 1400 & after that, higher levels on the mid-term time-frame.
  • The short-term outlook remains “Buy-On-Dip” towards 1285 & 1255 levels for 1360 & and the next higher 1400 odd levels, maintaining a stop below 1230 on a closing basis.

Option Chain Study

  • Derivative Option Chain data indicates “Tug-Of-War” at around 1250 Strike rates, holding above which bias remains “Buy-On-Dip” with strict stops.
  • Maximum CE build-up is at 1300 & 1400 Strike while maximum PE build-up is at 1200 & 1250 Strikes. Dips towards 1250 & lower can provide a better risk-reward ratio for fresh trading long bets.

F&O Strategy

ScripADANIPORTS LTP 1306.95
RiskModerate
Ratio1:1
BiasRange to positive bias
Max Reward Expected~Rs. 48,000
Max Risk Expected~Rs. 16,000
ActionScripQuantityEntry PriceLTP
BUYADANIPORTS FEB 1320 CE8003020
SELLADANIPORTS FEB 1400 CE800100
Invest Now

2. TATACOMM LTP 1810.95

CounterTATACOMM 1810.95
CallBuy on dip
Target 11960
Target 22000
Stop LossBelow 1680
Time Horizon2-3 weeks
NotesBuy on dip around 1775 & Avg 1725

Tata Communications is a digital ecosystem enabler that powers today’s fast-growing digital economy. Tata Communications drives the next level of intelligence powered by cloud, mobility, Internet of Things (IoT), collaboration, security and network services. Tata Communications carries around 30% of the world’s internet routes and connects businesses to 80% of the world’s cloud giants and 4 out of 5 mobile subscribers.

Previous Close1754.5TTM EPS34.15
52 Week High1957.4TTM PE53.07
52 Week Low1156.8P/B34.03
Sector PE54.40Mkt Cap (Rs. Cr.)51,651
(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

  • The counter is broadly within a consolidation between the 1650 & 1850 zones for the last four months. Last week, the counter ended on a solid note at its highs, indicating a potential up-move in days to come.
  • The counter has an immediate minor hurdle around the 1960-2000 zone, followed by higher positional targets in the mid-term.
  • In the short-term outlook, bias can be “Buy-On-Dip” towards 1775 & 1725 levels for potential higher 1960 & higher thereafter, maintaining a stop below 1680 on a closing basis.

Option Chain Study

  • Derivative Option Chain data indicates “Tug-Of-War” at around 1700 Strike rates, holding above which bias remains “Buy-On-Dip” with strict stops.
  • Maximum CE build-up is at 1800 & 1900 Strike while maximum PE build-up is at 1700 & 1600 Strikes. Dips towards 1700 odd can provide a better risk-reward ratio for fresh trading long bets. Overall, look for hedged long strategies unless the counter witnesses short-covering sustaining above 1800 levels.

F&O Strategy

ScripTATACOMM 1810.95
RiskModerate
Ratio1:1
BiasRange to positive
Max Reward Expected~Rs. 31,000
Max Risk Expected~Rs. 19,000
ActionScripQTYEntry PriceLTP
BUYTATACOMM FEB 1800 CE5005959
SELLTATACOMM FEB 1900 CE5002121
Invest Now

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