Weekly Picks 20th Feb 2023

Eicher Motors Ltd.

Eicher Motors Limited (EML) is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. The world’s oldest motorcycle brand in continuous production, Royal Enfield has made its distinctive motorcycles since 1901. Focussed on bringing back simple yet engaging and accessible motorcycling, Royal Enfield operates in India and over 60 countries worldwide with modern development facilities in Leicestershire, UK and Chennai, India.

In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo – Volvo Eicher Commercial Vehicles Limited (VECV) – which has pioneered the modernisation of commercial vehicles in India and other developing countries.

Eicher Motors is listed on the BSE and National Stock Exchange and has been part of the NSE’s benchmark Nifty 50 Index since April 1, 2016.

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

• The counter has been in consolidation between 3050 & 3350 for the last eight weeks.
• Within the ongoing range, the counter witnessed some buying interest at lows in the last few weeks.
• The counter above 3050-3000 holds a “buy-on-dip” outlook
• On the higher end, the counter has resistance cum potential targets at around 3400 & net 3600 levels.

Open Interest Study

(Source: Fisdom Research)

• The open interest indicates maximum CE build-up between the 3300-3400 zone, indicating resistance.
• On the lower end, the maximum CE concentration of PE is between 3100 to 3200, indicating support.
• Per the current OI setup, “buy-on-dip & sell-on-rise” at around mentioned levels is suggested.

F&O Strategy

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Coal India Ltd.

Coal India Limited (CIL), the state-owned coal mining corporate, came into being in November 1975. With a modest production of 79 million Tonnes (MTs) at the year of its inception, CIL today is the single largest coal producer in the world. CIL functions through its subsidiaries in 84 mining areas spread over eight (8) states of India. Coal India Limited has 318 mines (as of 1st April 2022), of which 141 are underground, 158 opencast, and 19 mixed mines and manages other establishments like workshops, hospitals, etc.

It contributes to 85% of domestic coal production and 75% of coal-based generation. CIL contributes to 55% of the entire power generation and meets 40 % of the primary commercial energy requirements of the country. Company operates Asia’s largest opencast coal mine at Gevra with 45Mntn per annum coal production. It plays a crucial role in “Make in India” and making India incorporate globally competitive.

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

• After thirteen weeks of correction, the counter witnessed buying interest from its previous low support at around 210.
• Despite weak weekly market closing, the counter ended up 2%, indicating buying interest at lows.
• The counter has multiple resistances at the higher end. The counter can attempt a pull-back towards 228-230 levels if it holds above 210.
• Technically, buying on dips can be looked at. Suggest keeping strict stops for a potential pull-back in days to come.

Open Interest

(Source: Fisdom Research)

• Open interest has strong resistance at 220 & higher at 225 levels.
• Pull-backs are expected to witness fresh selling pressure at higher levels & need sustenance above mentioned levels for any major short-covering in days to come.

F&O Strategy

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