Categories: Weekly Pick

Weekly Picks 25th September 2023

1. Petronet LNG Limited

CounterPETRONET LTP 240.2
CallBuy on dip
Target 1252
Target 2260
Stop Loss222
Time Horizon3-4 weeks
NotesBuy-on-dip towards 235 & 228

Petronet LNG Limited (PLL) formed on April 2, 1998 as Joint Venture Company (JVC) having 50% shareholding of leading 4 Oil & Gas PSUs by GOI order dated July 4, 1997. An Independent Board managed JVC created for development of facilities for the import, storage and regasification of Liquefied Natural Gas. With equity participation from four Oil & Gas Maharatanas viz. Oil & Natural Gas Corporation (ONGC), Indian Oil Corporation Limited (IOCL), GAIL (India) Limited (GAIL) and Bharat Petroleum Corporation Limited (BPCL). Participation of Public Sector to the extent of 50%, balance 50% equity is being held by Public, FIIs, FPIs, Mutual Funds etc.

Previous Close237.9TTM EPS22.8
52 Week High254.4TTM PE10.5
52 Week Low195.7P/B2.6
Sector PE29.3Mkt Cap (Rs. Cr.)36,037

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

  • Petronet has been consolidating between the 180 and 250 range since 2019.
  • Recently, it formed a “Bullish” engulfing candle, followed by retracement and consolidation last week.
  • Technically, the counter has strong immediate support in the 225-220 zone, making it a good opportunity for short to mid-term buying during dips.
  • On the upside, the counter has the potential to target levels of 260 and higher in the coming weeks and months.

Top of Form

Open Interest Study

ExpiryCPStrikeOpen Interest
28-Sep-23CE250822
28-Sep-23CE260760
28-Sep-23CE270563
28-Sep-23CE240481
28-Sep-23CE245448
28-Sep-23CE255308
28-Sep-23PE240307
28-Sep-23PE230275
28-Sep-23CE280206
  • In the September Option Chain, the counter has the highest Call Option build-up at the 250 and 260 Strike Prices, suggesting a potential resistance level.
  • On the other hand, the maximum Put Option build-up is at the 240 and 230 Strike Prices, indicating important support levels.
  • Buying opportunities may arise if the stock dips towards 230 or lower, offering a favorable risk-reward ratio for fresh long bullish spreads and delivery buying.

F&O Strategy

ScripPETRONET LTP 240.2
RiskModerate
Ratio1:1
BiasHolding above 230-225 – “Range to up”
Max Reward Expected₹51,600
Max Risk Expected₹8,400
ActionScripQuantityIPLTP
BUYPETRONET SEP 240 PE30002.552.55
SELLPETRONET SEP 260 PE300019.7519.75
Invest Now

2. Zee Entertainment Enterprises Limited

CounterZEEL LTP 265.3
CallBuy on dip
Target 1290
Target 2305
Stop Loss240
Time Horizon1-2 months
NotesBuy-On-Dip towards 261 & 248

Zee Entertainment Enterprises Limited (ZEEL) is a media and entertainment company engaged in providing broadcasting services. The company operates through content and broadcasting segment. The company has a library, housing over 260,000 hours of television content. From giving India its first private satellite TV channel in 1992, to reaching 1.3 billion viewers around the world through linear and digital platforms. ZEE, today, is the global entertainment go-to, with an integrated team creating and serving extraordinary content.

Previous Close267.3TTM EPS0
52 Week High290.7TTM PE
52 Week Low109.4P/B2.53
Sector PE170.1Mkt Cap (Rs. Cr.)25,501

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

  • ZEE has been showing weak performance and consolidating since 2020.
  • The counter has formed a “Cluster strong” support range between 200 and 160.
  • This year, it dropped to 170 but rebounded to 290 before entering a consolidation phase.
  • Over the past six weeks, it has been consolidating tightly between 260 and 290.
  • Last week, it closed at 265.50, near the ongoing consolidation support zone.
  • Can consider buying on dips for fresh, short-term delivery trading positions, following the provided levels, and setting strict stop-loss points.

Open Interest

ExpiryCPStrikeOpen Interest
28-Sep-23CE3002651
28-Sep-23CE3202121
28-Sep-23CE2801781
28-Sep-23CE2701104
28-Sep-23PE250882
28-Sep-23CE290870
28-Sep-23PE270864
28-Sep-23PE240696
28-Sep-23PE260638
  • In the September 2023 Option Chain analysis, the Strong Call Option (CE) build-up is observed at Strike Prices of 300, 320, and 280. The maximum Put Option (PE) build-up is seen at Strike Prices of 250, 270, and 240, indicating support levels.
  • Short-term upside potential seems limited, but the mid-term outlook suggests a “Range to Bullish” sentiment.
  • Investors can consider buying on dips for “Delivery Buying” and implementing a Bullish Call Ratio Spread strategy.

F&O Strategy

ScripZEEL LTP 265.3
RiskModerate
Ratio1:1
BiasHolding above 255/240 – “Range to up”
Max Reward Expected₹ 55,500
Max Risk Expected₹ 19,500
ActionScripQTYIPLTP
BUYZEEL SEP FUT3000265.5265.5
BUYZEEL SEP 265 PE300066
Invest Now

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