Weekly Picks 21st August 2023

1. India Cements Ltd

Counter	INDIACEM LTP 237.1
Call	Buy on dip
Target 1	268
Target 2	285
Stop Loss	218
Time Horizon	4-5 weeks
Notes	Buy-on-dip towards 232 & 222

India cements Ltd was founded in the year 1946 by two men, Shri S N N Sankaralinga Iyer and Sri T S Narayanaswami. They had the vision to inspire dreams for an industrial India, the ability to translate those dreams into reality and the ability to build enduring relationships and the future.
Sri T S Narayanaswami, the banker turned industrialist, was the catalyst who saw the project cross through numerous hurdles and emerge as a viable and marketable proposition.

Previous Close	241.0	TTM EPS	0
52 Week High	298.9	TTM PE	—
52 Week Low	167.2	P/B	1.3
Sector PE	45.4	Mkt Cap (Rs. Cr.)	7,343

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

The counter has bounced back from lows of 211 to highs of 260 before retracing back to 233 levels in last seven sessions.
The counter has immediate crucial and decent support at around 230 & 218 levels which can be looked for fresh trading long bets.
The counter holding above 245 can attempt higher towards 260/ 268 & major 285/300 levels gradually in weeks to come.

Open Interest

In the analysis of the Option Chain for the August series, the highest Call Option buildup is seen at the 240 Strike Rate, while significant Put Option buildup is observed at the 220 and 240 Strike Rates, which can be considered as immediate support levels.
Based on the Option Chain analysis, consider a buy-on-dip approach for this counter in the upcoming days, with the anticipation of witnessing higher levels in the weeks ahead.

F&O Strategy

Scrip	INDIACEM 237.1
Risk	Moderate
Ratio	1:1
Bias	Holding above 218 – “Range to up”
Max Reward Expected	₹29,000
Max Risk Expected	₹ 0

Action	Scrip	Lot Size	IP	LTP
BUY	INDIACEM AUG 240 CE	2900	5	5
SELL	INDIACEM AUG 250 CE	5800	2.5	2.5

Invest Now

2. Bharat Forge Ltd

Counter	BHARATFORGE LTP 969.5
Call	Buy on dip
Target 1	1,020
Target 2	1,060
Stop Loss	920
Time Horizon	3-4 weeks
Notes	Buy-On-Dip towards 960 & 940

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	956.2	TTM EPS	15.1
52 Week High	983.5	TTM PE	64.3
52 Week Low	677.4	P/B	6.7
Sector PE	43.5	Mkt Cap (Rs. Cr.)	45,197

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

From a technical perspective, the counter broke out to reach new highs in the last week of July, going beyond the 900 level.
As long as it stays above the support range of 900 to 880, the overall trend remains “Range to Up” in the short to medium term.
Looking at higher levels, according to the “Harmonic Price” analysis, potential targets in the coming months could be around 1060 to 1100, with the first significant stop in this range.

Open Interest

Looking at the August Option Chain, we can see the highest Call Option buildup at the 1000 and 980 Strike Rates. On the other hand, significant Put Option buildup is seen at the 900 and 920 levels on the lower end.
Traders can consider hedged long option strategies in this situation.

F&O Strategy

Scrip	BHARATFORGE LTP 969.5
Risk	Moderate
Ratio	1:1
Bias	Holding above 920 – “Range to up”
Max Reward Expected	₹ 34,650
Max Risk Expected	₹ 15,350

Action	Scrip	QTY	IP	LTP
BUY	BHARATFORGE AUG 970 CE	1000	20.75	20.75
SELL	BHARATFORGE AUG 1020 CE	1000	5.4	5.4

Invest Now

Disclaimer: This document is not intended for anyone other than the recipient. The contents of this document may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. If you have received the publication in error please notify the sender immediately. If you are not the named addressee, you should not disseminate, distribute or copy this document. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited. All non-authorised reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings. This document has no contractual value and is not and should not be construed as advice or as an offer or the solicitation of an offer or a recommendation to take action in consonance in any jurisdiction. Finwizard Technology Private Limited (“Fisdom”) makes no guarantee, representation or warranty and accepts no responsibility or liability for the accuracy or completeness of the information and/or opinions contained in this document, including any third party information obtained from sources it believes to be reliable but which has not been independently verified. In no event will Fisdom be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your use of this document or your reliance on or use or inability to use the information contained in this document, even if you advise us of the possibility of such damages, losses or expenses. Fisdom does not undertake any obligation to issue any further publications or update the contents of this document. The information stated and/or opinion(s) expressed herein are expressed solely as general commentary for general information purposes only and do not constitute advice, solicitation or recommendation to act upon thereof. Fisdom does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. The information contained within this document has not been reviewed in the light of your personal circumstances. Please note that this information is neither intended to aid in decision making for legal, financial or other consulting questions, nor should it be the basis of any investment or other decisions. Fisdom may have issued other similar documents that are inconsistent with and reach different conclusion from the information presented in this document. The relevant offering documents should be read for further details. You should make such researches/inspections/inquiries as it deems necessary to arrive at an independent evaluation of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks involved. Fisdom makes no representations that the offerings mentioned in this document are available to persons of any other country or are necessarily suitable for any particular person or appropriate in accordance with their local law. Among other things, this means that the disclosures set forth in this document may not conform to rules of the regulatory bodies of any other country and investment in the offer discussed will not afford the protection offered by the local regulatory regime in any other country. Past performance contained in this document is not a reliable indicator of future performance whilst any forecasts, projections and simulations contained herein should not be relied upon as an indication of future results. The historical performance presented in this document is not indicative of and should not be construed as being indicative of or otherwise used as a proxy for future or specific investments. The relevant product documents should be read for further details. Fisdom does not undertake any obligation to issue any further publications to you or update the contents of this document and such contents are subject to changes at anytime.

Fisdom Research