1. Bharat Electronics Ltd
| Counter | BEL LTP 133.4 |
| Call | Buy on dip |
| Target 1 | 140 |
| Target 2 | 160 |
| Stop Loss | 120 |
| Time Horizon | 3-4 weeks |
| Notes | Buy-on-dip towards 130 & 125 |
Bharat Electronics Limited is an Indian Government-owned aerospace and defence electronics company. It primarily manufactures advanced electronic products for ground and aerospace applications. BEL is one of nine PSUs under the Ministry of Defence of India.
| Previous Close | 134.4 | TTM EPS | 4.3 |
| 52 Week High | 137.9 | TTM PE | 30.9 |
| 52 Week Low | 87.0 | P/B | 2.6 |
| Sector PE | 44.6 | Mkt Cap (Rs. Cr.) | 97,512 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- The counter is creating a pattern of “Higher Lows & Higher Highs,” indicating a strong upward trend.
- If the counter remains above 120 levels in the short to medium term, outlook is ‘Accumulate’. This could lead to potential gains at around 140 in the near future, followed by higher targets of 160 and 180 in the medium to long term.
Open Interest Study
- According to the August option chain analysis, there is a “tug-of-war’ at 130 level, while Call Options (CE) is seen at around 135 and 140 strike rates, which are acting as near-term resistance levels for the stock.
- The counter is currently in a consolidation phase with a positive outlook within the range of 120 and 140. This is expected to hold in the short to medium term
F&O Strategy
| Scrip | BEL 133.4 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Holding above 130 – “Range to up” |
| Max Reward Expected | ₹33,202 |
| Max Risk Expected | ₹ 24,795 |
| Action | Scrip | Lot Size | IP | LTP |
| BUY | BEL SEP 130 CE | 5700 | 7.6 | 7.6 |
| SELL | BEL SEP 140 CE | 5700 | 3.25 | 3.25 |
|
2. Federal Bank Ltd
| Counter | FEDERALBANK LTP 140.7 |
| Call | Buy on dip |
| Target 1 | 160 |
| Target 2 | 180 |
| Stop Loss | 125 |
| Time Horizon | 1-2 months |
| Notes | Buy-On-Dip towards 138 & 130 |
Federal Bank is the preferred Personal, NRI and Business banking partner for a growing expanse of customers across India, in both urban and rural areas. The Bank is driven by the quest to be one of the most admired banking institutions in the country. This is just one manifestation of the Bank’s powerful ‘Digital at the Fore, Human at the Core’ proposition. Redefining human experience, the digital way has been a constant goal.
| Previous Close | 140.7 | TTM EPS | 14.5 |
| 52 Week High | 143.8 | TTM PE | 9.7 |
| 52 Week Low | 105.2 | P/B | 1.5 |
| Sector PE | 23.9 | Mkt Cap (Rs. Cr.) | 33,054 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- Over the last five years, the stock has formed a positive pattern known as the “Inverse Head & Shoulder pattern” on a longer-term basis.
- In the past ten months, the stock experienced a significant breakout above the 120 level, a key point called the “Neckline,” and then retraced to test this level again.
- The stock appears poised to achieve a higher target of 180 or more in the coming months based on its current formation.
- In the short to medium term, the initial target could be around 160 levels.
- For the next few weeks to months, from a technical standpoint, consider accumulating the counter as long as it stays above the immediate support range of 125-120. This could lead to potential gains reaching first 160 and then a major target of 180 levels in the months ahead.
Open Interest
- Based on the August Option Chain analysis, there’s significant concentration of options around the 140 to 150 Strike Rates, which suggests a resistance level.
- The key level where there’s a bit of a struggle is at 135.
- If the stock holds above 135, it might shift from a sideways range to an upward movement, which could make a “Hedged Long Option Strategy” worth considering.
F&O Strategy
| Scrip | FEDERALBANK LTP 140.7 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Holding above 135 – “Range to up” |
| Max Reward Expected | ₹31,250 |
| Max Risk Expected | ₹18,750 |
| Action | Scrip | QTY | IP | LTP |
| BUY | FEDERALBANK SEP 140 CE | 5000 | 6.05 | 6.05 |
| SELL | FEDERALBANK AUG 150 CE | 5000 | 2.3 | 2.3 |
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