1. Ashok Leyland Ltd
| Counter | ASHOKLEY LTP 181.9 |
| Call | Buy on dip |
| Target 1 | 197 |
| Target 2 | 210 |
| Stop Loss | 162 |
| Time Horizon | 3-4 weeks |
| Notes | Buy-on-dip towards 178 & Avg around 170 |
Ashok Leyland, flagship of the Hinduja group, is the 2nd largest manufacturer of commercial vehicles in India, the 4th largest manufacturer of buses in the world, and the 19th largest manufacturers of trucks. Headquartered in Chennai, 9 manufacturing plants gives an international footprint – 7 in India, a bus manufacturing facility in Ras Al Khaimah (UAE), one at Leeds, United Kingdom and a joint venture with the Alteams Group for the manufacture of high-press die-casting extruded aluminium components for the automotive and telecommunications sectors, Ashok Leyland has a well-diversified portfolio across the automobile industry. Ashok Leyland has recently been ranked as 34th best brand in India
| Previous Close | 175.5 | TTM EPS | 4.4 |
| 52 Week High | 183.2 | TTM PE | 41.0 |
| 52 Week Low | 133.1 | P/B | 6.24 |
| Sector PE | 52.3 | Mkt Cap (Rs. Cr.) | 53,393 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- Last week, Ashok Leyland’s weekly chart showed a significant breakout pattern called “Double Top.”
- According to technical analysis, Ashok Leyland can be considered for a “Buy-On-Dip” strategy, targeting higher levels of 197, 210, and beyond, as long as it stays above the strong support level around 162.
- In the coming weeks, investors can consider buying the stock at dips towards 178 and 170, with the expectation of holding for potential higher gains in the following months.
Open Interest Study
- Based on the July Open Interest Chain data, Ashok Leyland has a significant build-up of Call options (CE) at strike prices of around 180 and 190, and Put options (PE) have the most build-up at strike prices of 170 and 180.
- This data suggests that there is a strong battle between buyers and sellers at the 180 level, which is acting as a major resistance for the stock.
- Looking at the limited data available for August, it seems that the downside is also limited.
- Overall, if Ashok Leyland stays above the 180 level, the weekly bias can be considered as “Range to Up,” meaning there is potential for the stock to move higher within a certain range.
F&O Strategy
| Scrip | ASHOKLEY LTP 181.9 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to positive |
| Max Reward Expected | ₹50,000 |
| Max Risk Expected | ₹30,000 |
| Action | Scrip | Lot Size | IP | LTP |
| BUY | ASHOKLEY AUG 180 CE | 5000 | 9.4 | 9.4 |
| SELL | ASHOKLEY AUG 196 CE | 5000 | 3.4 | 3.4 |
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2. State Bank of India
| Counter | SBIN LTP 614.95 |
| Call | Buy on dip |
| Target 1 | 640 |
| Target 2 | 680 |
| Stop Loss | 585/555 |
| Time Horizon | 3-4 weeks |
| Notes | Buy-On-Dip towards 610 & 595 |
State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector Banking and Financial services statutory body headquartered in Mumbai. The rich heritage and legacy of over 200 years, accredits SBI as the most trusted Bank by Indians through generations.
SBI, the largest Indian Bank with 1/4th market share, serves over 48 crore customers through its vast network of over 22,405 branches, 65,627 ATMs/ADWMs, 76,089 BC outlets, with an undeterred focus on innovation, and customer centricity, which stems from the core values of the Bank – Service, Transparency, Ethics, Politeness and Sustainability.
| Previous Close | 610.0 | TTM EPS | 62.4 |
| 52 Week High | 629.6 | TTM PE | 9.9 |
| 52 Week Low | 430.7 | P/B | 1.87 |
| Sector PE | 10.5 | Mkt Cap (Rs. Cr.) | 5,48,952 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- The overall outlook for SBI is bullish, provided it stays above the immediate support levels of 555 and 480. In this case, the potential targets on the higher end are 680 and 740.
- In the short to mid-term, SBI is considered a “Buy-On-Dip” stock, as it ended the previous week on a strong note, indicating the possibility of a fresh upward movement.
- According to price analysis, if SBI remains above the immediate support zone of 585-580, it is expected to continue its “Buy-On-Dip” trend, with an immediate target and resistance at 640 levels, followed by 680 in the coming months.
Open Interest
- Based on the Option Chain Data for the July Series, SBI is experiencing a significant “Tug-Of-War” at around 620 levels.
- There is a high build-up of Call options (CE) at the 620 strike price and a significant build-up of Put options (PE) at the 600 and 590 strike prices.
- The data suggests that if the stock dips towards 610 or 600, it may present a good risk-reward opportunity for traders to consider long hedged positions, as there is substantial open interest at higher strike prices.
F&O Strategy
| Scrip | SBIN LTP 262.15 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to positive |
| Max Reward Expected | ₹47,700 |
| Max Risk Expected | ₹27,300 |
| Action | Scrip | QTY | IP | LTP |
| BUY | SBIN AUG 610 CE | 1500 | 25.4 | 25.4 |
| SELL | SBIN AUG 660 CE | 1500 | 7.2 | 7.2 |
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